A few weeks ago, the Ministry of Justice (Ministry) presented the eagerly-expected draft of an act that would terminate certain “old” enforcement proceedings. This proposal comes in the context of their overwhelming number (three million, involving 950 thousand people out of a country of 5.4 million) – many of them lasting for years and without any realistic chance of recovery of the creditors´ receivables.
With certain exemptions, the enforcement proceedings begun prior to 1 April 2017 are to be terminated if, within five years following the commencement of such proceedings, the judicial enforcement officer was unable to enforce the adjudicated claim fully and unless he/she was able to collect at least 15 euros within the last 18 months. A flat fee for the termination should be paid by the creditors to the judicial enforcement officers, in an amount to be stipulated by the Ministry.
The termination of the “old” enforcement proceedings does not result in the termination of the debt – the creditor is free to file a new petition to enforce its claim, and this time, under the new conditions applicable from 1 April 2017.
Only a couple of days ago, the Ministry received substantial comments to the draft, mostly from creditors with large numbers of debtors (e.g., health insurers) that object, amongst others, to their responsibility to cover the costs and even citing certain constitutional concerns. The Ministry will clearly have a difficult time ensuring that its proposal achieves its aims and remains within the limits of constitutionality.