Ostermann - Amendments to the Enforcement Law
Amendments to the Enforcement Law
Due to the economic consequences caused by the COVID-19 disease epidemic, a proposal for amendments to the Enforcement Act, which aims to make enforcement proceedings faster and more economical, with enhanced protection of debtors' dignity, was sent to the urgent parliamentary procedure in November 2020 by the Government of the Republic of Croatia. The proposed amendments were voted on at the session of the Croatian Parliament on 27 November 2020, and they entered into force on 28th November 2020 by publication in the National Gazette No. 131/2020.

Among the most significant changes are within the provisions on delivery in enforcement proceedings, the new method of submitting and the new form of the enforcement proposals, the provided possibility of suspending enforcement due to the inactivity of the bailiff and the change in the role of public notaries in the enforcement proceedings.

With respect to novelties regarding the delivery, the new provisions extend mandatory electronic communication with the courts to the enforcement procedures, so that all mandatory participants in electronic communication from litigation (lawyers, notaries, bankruptcy trustees, legal entities, etc.) become liable for electronic communications and enforcement proceedings.

On the other hand, for natural persons who do not perform the registered activity and natural persons who perform the registered activity if they the delivery is not connected to that activity, the new provisions stipulate that in case the delivery is done by placing letters on the e-bulletin board of courts, a notification on the day of expiration of the letter on the e-bulletin board will be delivered to the natural person’s mailbox. Also, for natural persons who use the "e-Citizens" system, the notice on placing the letter on the e-bulletin board will be delivered to the personal electronic mailbox.

In relation to the changes regarding the form of the enforcement proposal, it should be noted that for both types of proposals (based on the authentic document and on the enforceable document) the ordinance will prescribe forms. Also, special attention is drawn to the fact that proposals for enforcement based on the authentic documents will no longer be submitted to public notaries, but to the court electronically in a strictly legible form. Those will be forwarded by the court proposal to the notary public as its trustee, who will, prior to delivering a writ of execution, invite the debtor to fulfil the claim to the bailiff for the realization of the submitted proposal.

Regarding other novelties, the changes in terms of foreclosure on real estate stand out. Thus, the new regulation of foreclosure on real estate is possible only for claims whose principal exceeds the amount of HRK 40,000.00 (instead of the previous HRK 20,000.00), and foreclosure for the purpose of emptying and handing over the property will not be carried out (except exceptionally) in the period from November 1st to April 1st towards a natural person who does not perform the registered activity, ie towards the one who performs the registered activity if enforcement is not carried out in connection with that activity.

Janko Havaš, Associate

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