Movable assets

Movable assets that can be distrained include e.g. vehicles, various securities, such as shares in a housing company, funds on a bank account, tax refunds and cash. Ordinary household effects are not subject to distraint. Also tools and similar objects are not subject to distraint, unless they are of considerable value. The illness of the debtor or a member of his or her household, or other extraordinary circumstances, can sometimes be a barrier to enforcement.

When an enforcement matter becomes pending, the debtor is normally given a pendency notice, which contains e.g. instructions for the distraint process. A protocol is drawn up; it includes also instructions for appeal. The enforcement authority sends a notice of distraint to all the registers into which the distrained assets have been entered.

The distrained assets may be left in the possession of the debtor, who may not sell or otherwise dispose of them. The assets left in the possession of the debtor must be properly managed.

If the debtor does not repay the debt, the distrained assets are sold by compulsory sale.

Updated on 4th of May 2011