Compulsory enforcement
What is compulsory enforcement?
Compulsary enforcement is defined as the use of state coercive power to enforce enforceable claims. If the obligor fails to fulfil their obligation voluntarily, the obligee can only enforce it with the assistance of the courts.
Which parties are involved in compulsory enforcement proceedings?
Compulsory enforcement is a state monopoly. Only courts, administrative authorities and tax authorities have the power of enforcement – and, in the case of the seizure of immovable property to enforce monetary claims, the courts alone have this power. The parties to enforcement proceedings are referred to as the claimant and the defendant.
What is the procedure for compulsory enforcement proceedings?
In the standard case of enforcement against assets, the assets specified in the application for enforcement are realised to satisfy the creditor bringing the proceedings (individual enforcement or special enforcement). Where several creditors who do not hold a security interest in the asset subject to enforcement are seeking to satisfy their claims from the same asset, the order of priority applies to the satisfaction of their claims. If the debtor’s assets are no longer sufficient to satisfy all creditors, collective enforcement within the framework of insolvency proceedings is required in place of individual enforcement, to ensure the equal satisfaction of all creditors; these proceedings cover the entirety of the debtor’s assets that would otherwise be subject to individual enforcement and which provides for creditors not on a first-come, first-served basis but in proportion to their respective claims.
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