Distraint
Debts are collected by the distrainor (the distraint is performed) on the basis of a judicial decision as follows:
- Deduction from the obligor’s (debtor’s) wages or other incomes.
- Garnishment order (applicable e.g. to money deposited on an account).
- Sale of movable and immovable property.
- Sale of the entire enterprise of the obligor (this may also apply to ownership interests in business corporations, membership rights in a cooperative housing society, patents, industrial designs and trademarks).
The method of distraint is decided by the distrainor depending on the result of the investigation in the obligor’s property status or, if applicable, according to the information on the obligor’s property provided by the beneficiary (creditor).
How to deal with unacknowledged distraints?
Undue debts or even overdue debts which have not been acknowledged with the powers of distraint cannot be collected; nevertheless, they can be secured. The optimum method of securing a debt is to make a distrainor’s record of debt acknowledgement containing the debtor’s consent with the performance of record distraint.
Why choose our company for performing a distraint?
Our company cooperates with distraining brokers of a distrainor appointed by the court, as well as companies dealing with arbitration procedures, auction sales etc.
