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NEW ENFORCEMENT PROCEEDINGS ACT

New enforcement proceedings act, i.e. most of its provisions, enters into force on July 1st 2012. A new institute of public bailiff is introduced in the enforcement system of the Republic of Croatia with the main mission of executing the enforcement.

Motion for enforcement is filed to, as by now, the public notary or the court. The enforcement order issued by the court or the public notary is then referred to the public bailiff who then issues a „warrant of execution“ necessary for the execution of the enforcement order. Enforcement cases, in which the court didn’t take any action by the end of 2011, shall be sent directly to the public bailiff’s chamber in order to speed up the enforcement proceedings.

The public bailiff (the enforcement authority) is the one deciding on enforcement delays, and no longer the court. The conditions for a delay are also changed so now the enforcement debtor, in order to delay the enforcement, must pay the bail which amounts capital plus interests, all with the purpose of preventing often enforcement delays.

The enforcement debtors can no longer file complaints against enforcement orders and in that way furthermore delay the proceedings. The appeal is the only possible legal remedy against the enforcement order and the warrant of execution and it doesn’t delay the proceedings. The court decides on the appeal.

The enforcement creditors’ protection in the enforcement proceedings is enhanced with the new possibility of holding the third auction hearing. On the second and third auction hearing the real estate shall not be sold under ½ of its value, in difference to today’s 1/3 of its value paid on the second auction hearing.