Attachments for debt collection - here's what you need to know
Do you also find that your customer is not paying their invoices? Then debt collection can be a very effective way to get your money back.
Debt collection is a series of actions, ranging from sending reminder letters and debt collection notices to enforcement in the enforcement court. One of the actions available in debt collection is the attachment of assets.
In this article, we will guide you through everything you, as a creditor, debt collection company or debt collection lawyer, should know about placing an attachment on your customer.
Attachments - what are they?
An attachment is a legal lien that you as a creditor, debt collection company or debt collection lawyer can place on the customer's assets, i.e. property, through the enforcement court.
Basically, anything of value that the customer owns or co-owns can be seized. In practice, this often ranges from cash, deposits, real estate and vehicles to works of art, designer furniture, etc.
However, you should be aware of the concept of hardship benefit, which means that your customer is entitled to keep assets that maintain a modest home and standard of living.
There is no legal definition of what constitutes a modest home, but it usually includes basic furniture, a television, a cheap mobile phone, etc.
When is an attachment made?
An attachment is typically made with the customer after a prior debt collection process where a series of actions, such as debt collection notices, reminders, etc. have not led to a solution.
The basic purpose of seizing your customer's belongings is to secure your claim.
When the assets are sold, you will receive the cash amount that the attachment is worth. For example, if a real estate attachment has been placed on a property, you will receive the money when the property is sold or put up for foreclosure.
Note that you may not get the amount if the asset is sold for less or if other creditors are entitled to payment before you. This is a question of the priority of the mortgage. In the case of a real estate property, the mortgage lender or bank typically has to be paid first.
How to make an attachment?
The customer is summoned to a meeting at the enforcement court where he/she has to declare his/her assets. You as a creditor, your debt collection company or your debt collection lawyer can then ask the enforcement court to attach the assets declared. The enforcement court will then register and register the seized assets.
What happens if the customer fails to appear at the enforcement court?
We are often asked if the customer can simply fail to appear at the enforcement court - and yes, this is of course an option. In the event that this happens, the enforcement court can require the customer to be produced by the police or by means of a bailiff service, where the meeting will take place at the customer's address.
Do you need help to make an attachment?
Do you have an invoice that has not been paid? Then we here at Collectia are always ready to help you, regardless of whether debt collection has been initiated or not.
We help you every step of the way and with more than 150 years of experience, we know how to secure your money in the best possible way, whether it's through direct attachment or through a pre-collection process.
