Enforcement proceedings are a collection method that a creditor can initiate against a debtor even without a court judgment. The debtor's most fundamental defense against such proceedings is an objection to the payment order. Missing the objection deadline makes the proceedings final, while an unjustified objection can lead to compensation. For this reason, both creditors and debtors need to know the deadlines well.
How many days is the objection period?
In enforcement proceedings without a court judgment conducted by way of general attachment, the objection period is seven days from service of the payment order. In enforcement based on negotiable instruments such as checks, promissory notes and bills of exchange, the objection period is five days and the payment period is ten days. The objection period is also seven days in proceedings for the eviction of leased real property. Deadlines run from the day following the date of service, and if the last day falls on an official holiday, the deadline is extended to the next business day.
How is an objection filed?
An objection is filed with the enforcement office handling the proceedings, either in writing or by oral statement. It can also be submitted through UYAP (National Judiciary Informatics System) by an attorney. In proceedings without a court judgment, the debtor is not required to state any grounds for the objection. Simply saying "I object to the debt" is enough. However, if the debtor intends to contest the signature, this must be stated expressly. In enforcement based on negotiable instruments, the objection is filed with the enforcement court rather than the enforcement office, and grounds must be stated.
Consequences of the objection
In proceedings without a court judgment, a timely objection automatically halts the proceedings. A creditor who wishes to continue chooses one of two routes. If the creditor holds a document of the type listed in the Enforcement and Bankruptcy Law (No. 2004), it may ask the enforcement court for removal of the objection within six months. Otherwise, it may file an action for annulment of objection before the general courts within one year. In enforcement based on negotiable instruments, an objection does not halt enforcement steps other than the sale. Attachment can still be carried out unless the court rules otherwise.
The cost of an unjustified objection
If the debtor's objection turns out to be unjustified, the court, at the creditor's request, awards compensation for denial of the debt of no less than twenty percent of the claim. Likewise, if the creditor's proceedings turn out to be unjustified and brought in bad faith, compensation may be awarded in favor of the debtor. For this reason, the decision to object should be made after assessing whether the debt actually exists and which documents are available.
What can be done if the deadline was missed?
A debtor who missed the objection period through no fault of their own may request a late objection from the enforcement court within three days after the obstacle is removed. In addition, a person who believes they owe nothing can always file a negative declaratory action. If the proceedings have become final, that person can reclaim the amount paid through an action for recovery of undue payment.