A cat-and-mouse game often develops between creditor and debtor. Because even if you have been vindicated by the court, it is often still a challenge to monetize your awarded claim. This is because it is still not so easy to find out what assets your debtor has.
To make it easier in practice for creditors to actually recover their claims from the debtor, a number of changes to the attachment law will be implemented. The introduction will take place in three parts, the first on Oct. 1, 2020, and the last on April 1, 2021.
This news release discusses 3 relevant changes:
- The simplification of attachment of vehicles;
- Requiring banks to provide account information of debtor; and
- Introduction of an attachment-free foot in bank seizures.
Seizure of vehicles
Under current law, the bailiff can seize a debtor’s vehicle (for example, a car) only if he can actually see the vehicle. In practice, this often means a costly search. As of April 1, 2021, this will change and the bailiff may also seize by making an entry in the RDW’s vehicle registration register.
Should the vehicle eventually need to be sold so that the creditor can recover on the proceeds, the vehicle will of course still need to be traced. If the debtor sells or destroys the impounded vehicle, he commits a criminal offense.
Account information by banks
Also new is that as of January 1, 2021, the law includes an obligation for banks to provide account information of the debtor at the request of the bailiff. This significantly increases their clout, as the creditor will no longer have to guess at which bank(s) the debtor banks with. This obligation to provide account information only applies to executory attachments and not to precautionary (protective) attachments.
Bank seizure free amount
Against these advantages for the creditor is the introduction of an attachment free amount for bank attachments. For private debtors (natural persons), an attachment free amount already applies if an attachment is levied against the debtor on a periodic benefit, such as wages or benefits. By doing so, the legislator sought to guarantee a subsistence level.
Until recently, there was a means of getting around this attachment-free foot, by also seizing the debtor’s bank account. As of January 1, 2021, this will no longer be possible, because an attachment-free amount (which in fact amounts to an attachment-free foot) must also be maintained in the case of a bank attachment against a natural person. Thereby, for a single person, an attachment-free amount of € 1,661.40 per month and per bank applies. Only the balance above this amount is subject to attachment. ZZP-ers also fall under the term natural person and for them, therefore, an attachment-free amount also applies in the event of bank seizure.
In conclusion
Do you have a claim against a debtor that you want to collect or a question about (the recent changes in) the attachment law? Please feel free to contact one of the collection specialists of the Corporate Law Practice Group.
