08
Enforcement and Bankruptcy Law
Enforcement and bankruptcy law governs the collection of unpaid debts through state authority. It sets out distinct and strict time limits for creditors and debtors alike.
Enforcement routes
Depending on whether a court judgment exists, enforcement proceeds with or without a judgment. Negotiable instruments such as cheques and promissory notes have their own faster procedure.
The route chosen directly determines the debtor’s grounds of objection and the speed of the process.
Objection and its removal
A timely objection by the debtor halts enforcement. The creditor may then apply for annulment or removal of the objection.
A debtor against whom proceedings are brought despite owing nothing may seek a negative declaratory judgment.
Attachment, sale and bankruptcy
Once proceedings become final, the debtor’s assets are attached and the debt satisfied through sale. Ownership claims by third parties are resolved through the recovery procedure.
For insolvent commercial enterprises, composition with creditors and bankruptcy form a separate area.