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Seizure of Assets in Czech Republic

Seizure of Assets in Czech Republic

In the Czech Republic, the Civil Law provides rules and regulation on the seizure of assets when a debtor is in the incapacity of debt payment.

The types of assets that may be the subject to execution are:bank accounts, tangible movable assets, means of transport, immovable goods, other assets such as property rights pledged as security rights to a share in a business or registered trade mark or other goods or financial claims that don’t make the object of execution measures.

There are also assets which can not make the object of enforcement, such as:

-assets that can not be sold – when there are stipulated specific provisions;

-assets which are absolutely essential for the debtor’s and his family’s own and needs;

-assets for the purposes of the debtor’s work;

-common items of clothing, normal household furniture and equipment, wedding rings or similar objects;

-health care requisites.

A Czech Government decree regulates the methods of payment, as the principal may not be deducted from a debtor’s monthly wage.

The claims for compensation on the strength of an insurance contract with an insurance company cannot make the object of enforcement, in case of using the compensation for reconstruction or repair of a building.

State social support benefits and one-off pecuniary social care benefits cannot be enforced.

In case of seizure of assets, the debtor must comply with the obligation imposed by the Court decision in three days or in fifteen days in case of eviction. The Court decision must be in the legal effect. The Court can also specify other dead lines for compliance, besides the basic terms previously mentioned.

The seizure of assets is not possible without the execution warrant. This document put in effect the execution procedure which is carried out by virtue of the legal force of the resolution on the execution warrant and it is regulated by the provisions of the Code of Civil Procedure.

The enforcement agent can fill another motion to initiate the proceeding before the Court or other competent authority and he acts in the name of the State.  A similar situation can be also applied for the extent of the judicial executor, when, unless the Act on Judicial Executors provides otherwise, he is rightful to proceed the operations otherwise entrust to a judge or any other competent authority.

When third parties are involved (the bank), the financial institution receives a resolution of enforcement and it can not pay any sums of money, effect offsetting from the debtor’s account up to the amount of the enforced claim and related accessions.

From that moment on, the debtor doesn’t have the right to withdraw money or to use the money from the bank account up to the amount of the enforced claim and related accessions.

The debtor can submit an appeal against a resolution of enforcement by challenging a district court or regional court decision delivered in proceedings at first instance within fifteen days from the moment of delivery of the of the written copy of the decision.

The legally effective decision on the appeal is the final procedure and from that moment on the resolution takes legal effect.

A decision on pecuniary satisfaction that does not exceed CZK 2 000 cannot be appealed.