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Estonia · Law · SE

291

The Act on Amendments to the Code of Enforcement Procedures and the Law on Bailiffs and other related laws

avaldatud riigiteatajasEstonia· Riigikogu· ET

Introduced

23 November 2020

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AVALDATUD_RIIGITEATAJAS

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Source updated

24 March 2021

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Summary

The bill changes the current model of sharing public authority claims so that, similar to the owner of a private claim, the owner of a public claim can choose the bailiff himself. The bill also changes the fee provisions for bailiffs. The bailiff's basic fee is reduced to 50 percent of the fee rate if the debtor collects the claim based on the payment schedule and the payment schedule is concluded within the deadline given for voluntary fulfillment of the claim. For example, a claim of up to 1,000 euros in this case, the bailiff's basic fee is 225 euros, plus VAT, i.e. 270 euros in total, according to the bill, the debtor has to pay the bailiff's basic fee of 112.50 euros for a claim of 1,000 euros, including VAT is 135 euros. A lower fee should motivate the debtor to seek solutions. A new official function of the bailiff is being established, which is the preparation of the debtor's enforcement profile. The official action is intended to assist debt collectors with claims in assessing the perspective of recovery. To this end, the bailiff can provide the claimant with a complete overview of the enforcement proceedings initiated against the debtor, the debtor's financial situation, which would enable the claimant to decide whether it is expedient to submit an application for the initiation of enforcement proceedings. The cost of the official act is 15 euros and it is paid by the debt collector. The draft stipulates that the enforcement case can be transferred to another bailiff for processing, if the enforcement case has been processed for at least three years. According to the current law, this can be done if the bailiff has processed the claim for at least four years. According to the explanation, the current system of bailiffs has been struggling for several years due to the decrease in revenues. Therefore, the practice is uneven and some executors are unable to guarantee the rights of the participants in the proceedings. According to the bill, the state will pay the bailiff a fee for collecting monthly maintenance. With the procedure covering the associated costs is the debtor's responsibility, and collecting alimony is a loss-making activity for the bailiff, as the bailiff can charge a fee of 292 euros for a enforcement proceeding lasting 18 or more years. According to the draft, the amount of the maintenance recovery fee paid by the state per enforcement case is up to 100 euros per calendar year. The indicative budget cost per year is 0.5 million euros.

Machine translation from Estonian. The official text remains authoritative.

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