In the past few years, Montenegro has become an important pillar of the overall European economy, as the government is preparing to enter the European Union. Most of the Montenegrinlegislation has been adapted to the EU legislation, including the tax regulations and those related to the debt collection proceedings.
Even if Montenegro does not have a high rate of debt collection cases, it is important to note that there are specific cases which need special resolutions. The debt recovery procedure in Montenegro can be completed by a debt collection agency and can imply the recovery of any outstanding amount of money in an amicable way or through a court order which can include the seizure of assets.
Below, our debt collection lawyers in Montenegro explain how the seizure of assets is completed upon failure to recover a debt in other ways. We can help in debt collection in Montenegro, including in cases where the seizure of assets is necessary.
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Legislation on debt collection in Montenegro
The main law governing the debt collection procedure in Montenegro is the Law on Enforcement and Securing of Claims which was issued in 2011.
Debt collection in Montenegro under the law covers the following aspects:
- a debt can be tried to be recovered amicably through a specialized agency or law firm in Montenegro;
- if the amicable procedure has failed, court proceedings can be requested by the creditors;
- the debt collection procedure needs to respect a few steps which must be completed in a specific order;
- the debtor must first be notified about the claim and the lack of response will lead to a court procedure;
- in order to collect a debt, the court can issue an order through which the seizure of assets can be enforced.
It is important to note that the seizure of assets in a debt collection case in Montenegro is usually the last resort.
Determining the seizure of assets in debt collection in Montenegro
The assets which can be seized in a debt collection procedure in Montenegro can be assessed before starting court proceedings. However, it is important to note that the seizure of assets is different for natural persons and commercial entities, as the latter implies more complex steps.
In order to determine the assets which can be seized, the debt collection agency in Montenegro must first acknowledge what the assets of the person or company are and then evaluate them.
Our debt collection lawyers in Montenegro can advise claimants dealing with debt collection procedure which require the seizure of assets as the main way of recovering an outstanding amount of money.
What are the assets to be seized in case of debt collection in Montenegro?
There are various assets which can be seized in case of debt collection in Montenegro. However, the agency or lawyers conducting the debt recovery procedure must first know if the debt is secured or unsecured.
In the case of secured debt (such as commercial debts), the assets can be seized without a court order. In the case of unsecured debts, the lawyer will need a court order in order to seize the assets of a Montenegrin debtor.
The assets which can be sized are real estate property, auto vehicles, vessels, or even money deriving from other sources unrelated to the debt.
If you are dealing with a debt collection case which implies the seizure of assets in Montenegro, we invite you to discuss your case with our lawyers in order for you to obtain the best outcome.
The procedure of seizing assets in debt recovery in Montenegro
The enforced procedure of seizing assets in a debt collection case in Montenegro can be based on the documents or evidence submitted by a local debt collection agency or by a foreign claimant.
The steps which need to be completed in this case are:
- a petition with a judgment creditor must first be lodged in, for the debt to be acknowledged;
- then, another petition of the security petitioner will be filed in order for the assets to be seized to be secured;
- the court will then appoint an enforcement officer who will enforce and oversee the seizure of assets;
- the defendant will be presented with the documents which provide for the seizure of the assets;
- the seizure of the assets can be done in a specific order, as imposed by the Montenegro court.
Among the documents which need to be presented to the defendant upon the seizure of assets are the court decision and settlement, the notarial document which provides for the enforcement of the decision, as well as other documents in accordance with the debt collection case.
The seizure of assets in case of debt collection in Montenegro is not complicated as long as the claim is correctly supported, which is why we invite you to contact our lawyers for specialized assistance.