How do bailiffs work?

Where is the writ of execution submitted?

There are several options for how a writ of execution can be presented for collection. According to the Federal Law “On Enforcement Proceedings”, you have the right to submit a writ of execution to the territorial branch of the Bailiff Service. This can be a branch located both at the place of residence (registration) of the debtor, and at the place of his stay (actual location), as well as at the location of his property.

In addition, you can bypass the appeal to the bailiffs and submit a writ of execution to the bank where the debtor’s current account is opened. To find out which bank the debtor uses, contact any tax authority with an application to provide information about the debtor’s accounts - and you will be able to receive this information after 7 days. And if your debtor is a citizen from the public sector, then you can start with Sberbank: given the share of the banking market that it occupies, the chances of writing off the debtor’s money “at random” are quite high. The bank that has received the writ of execution from the claimant is obliged to independently establish accounts and write off funds from all existing accounts within the amount specified in the writ of execution.

Finally, the writ of execution can be presented to the organization that pays the debtor-citizen periodic payments (salary, pension, scholarship). This could be the debtor’s employer company, a pension fund, an educational institution, etc. The legislation allows this method of collection if the amount of the debt does not exceed 25,000 rubles or if the writ of execution compensates for harm to health, alimony or other periodic payments are collected.

Contacting the bank

Federal Law No. 8 “On Enforcement Proceedings” allows the claimant to independently collect funds from the debtor after a court decision and receipt of a writ of execution.

When information about the debtor's accounts is received, it will be necessary to contact the bank where the debtor's accounts are opened. The writ of execution is submitted to the debtor's bank along with an application for the transfer of funds to the plaintiff's account. The bank will consider this application within three working days. Contacting the bank, bypassing the court service, can significantly shorten and simplify the process of collecting funds from the debtor.

If the amount of debt subject to collection under a writ of execution exceeds 25 thousand rubles, then the writ of execution can be presented at the debtor’s place of work or at the place where he receives other income.

If the debtor does not pay according to the writ of execution, then writing off funds from the debtor’s current account is one of the most effective methods of collecting the required amount. To do this, you need to contact the bank with a corresponding application. The following documents must be attached to it:

• performance list;
• documents confirming the authority of the person who signed the application;
• if the documents are not submitted by the plaintiff, then the person submitting the application to the bank must have a power of attorney.

The application indicates the details of the debtor (the money will have to be transferred to them) and the details of the party collecting the debt. It is also necessary to indicate the address of the debtor and the collector. When the debtor is a legal entity, the application to the bank indicates: INN, OGRN, KPP. The writ of execution itself must also be described: series and number, by whom and when it was issued. The party submitting the application must indicate a telephone number at which the bank can contact him in case of any questions. You can download a sample application to the bank on our website.

Application to the bank of an individual under a writ of execution

If the debtor's account is empty, you need to contact the Bailiff Service. In this case, the bank will return the writ of execution to the claimant. Contacting a bank to collect a debt from a debtor is effective when the debtor is solvent and deliberately does not keep large sums in accounts for a long time.

How to properly fill out an application to the bailiff service?

If it is impossible to collect the debt with the help of banks, employers and other organizations, you should contact the Bailiff Service.

Enforcement proceedings are initiated by a bailiff based on an application from the claimant or his representative. The application to initiate enforcement proceedings is accompanied by the original writ of execution and the representative’s power of attorney (if he signs the application himself).

Before submitting the writ of execution, it is important to check whether the three-year period for presenting the writ of execution has expired, whether all the necessary information is indicated in the writ of execution (for the list of requirements, see Article 13 of the Federal Law “On Enforcement Proceedings”) and whether there are any errors in the writ of execution. Otherwise, the bailiff is obliged to refuse to initiate enforcement proceedings. True, it is worth noting that, for example, in recent years, judicial practice has been critical of refusals to initiate enforcement proceedings due to the lack of information about the debtor’s place of birth in the writ of execution, pointing out the insignificance of this identifying information (see Resolution of the Arbitration Court of the Ural District dated October 7, 2015 in case No. A60-19042/2015).

Particular attention should be paid to the power of attorney, that is, the powers of the representative. The text of the power of attorney must indicate the right of the authorized person to present and revoke the executive document. Otherwise, the bailiff will issue a decision to refuse to initiate enforcement proceedings and return the writ of execution. It is also worth knowing about other powers of the representative, which are specifically stipulated in the power of attorney. Such powers are:

• transfer of authority to another person (subassignment),
• appealing decisions and actions (inaction) of the bailiff,
• receiving the awarded property,
• refusal of recovery under a writ of execution,
• conclusion of a settlement agreement.

Thus, when preparing a power of attorney, you need to check whether the scope of powers specified in the power of attorney corresponds to those powers that are actually necessary when representing the interests of the claimant.

It is important to carefully work on the content of the application. The application must indicate requests for seizure of property of which you are aware:

• information about bank accounts,
• real estate (you can make requests in advance and attach an extract from the Unified State Register to the application),
• motor transport (you may have taken a copy of the vehicle registration certificate),
• information about the place of work (indicate employer details, address, telephone number),
• information from the Unified State Register of Legal Entities on the rights to the debtor’s shares in organizations,
• information about the spouse of the debtor-citizen (the spouse’s property may be arrested, and the creditor may demand the allocation of the debtor’s share through the court).

Sometimes, due to a lack of information in the application, the bailiff carries out enforcement proceedings for several months, when this could have been done much faster.

When submitting documents to the office of the bailiff department, we recommend that you immediately inquire which bailiff will receive the writ of execution, find out his office number and contact telephone number. The claimant's application and the writ of execution are transferred from the office to the bailiff within 3 days. It is important to monitor compliance with this deadline (you can call or come again). In enforcement proceedings, non-working days and holidays are not taken into account when determining the period. In practice, there are cases when, without any legal grounds, an executive document can lie in the office for more than a year.

The bailiff, within three days from the date of receipt of the enforcement document, issues a decision to initiate enforcement proceedings or to refuse to initiate enforcement proceedings. This process also cannot be ignored: if necessary, you need to remind the bailiff of the deadline established by law.

It is noteworthy that the claimant now has the opportunity to receive information about the progress of enforcement proceedings via e-mail. To do this, you must provide your email address in the application to initiate enforcement proceedings or in a separate notification. In addition, it has become possible to send electronic appeals through the personal account of a party to enforcement proceedings on the website of the Bailiff Service. Electronic interaction in this field is still being improved, but is already producing modest results, allowing for the prompt receipt and transmission of information, statements and petitions.

Information about the initiation of enforcement proceedings and the data of the bailiff who is conducting the proceedings can also be obtained from the Data Bank of Enforcement Proceedings on the Bailiff Service website. In addition, you can subscribe to changes in information on your debtor’s enforcement proceedings, which is very useful.

In addition, we recommend that you subscribe to change information about the debtor on the arbitration case filing website. If bankruptcy proceedings are initiated against the debtor, you will have two months (from the date of publication) to include your claims in the register of creditors' claims for their subsequent satisfaction from the debtor's bankruptcy estate. At the end of the procedure, the bankrupt organization will be excluded from the register of legal entities, and the bankrupt citizen may be released from paying debts.

Enforcement proceedings have been initiated, what next?

After initiating enforcement proceedings, the bailiff sends electronic requests to Rosreestr, the Federal Tax Service, the State Traffic Safety Inspectorate, the Pension Fund of the Russian Federation, to banks with which electronic document management is organized, the Civil Registry Office, the State Inspectorate for Civil Information Services, Rostechnadzor, cellular operators, and the Federal Migration Service. Responses to requests, as already noted, arrive to the bailiff within a few days, and some within a few weeks.

If there is an urgent need to seize the debtor’s property, then you need to agree with the bailiff on a joint departure, if possible, providing motor transport. It is best to go to the debtor in the very first days of enforcement proceedings, that is, while he does not yet know about the initiation of a forced collection procedure. In this case, the debtor may not have time to transport liquid property to another place or “draw” documents confirming the disposal of property from his property.

During your departure, insist (or better yet, agree with the bailiff in advance) on drawing up an inventory of property, issuing a resolution to seize the property and transferring the seized property for safekeeping to you (with the exception of real estate, which cannot be transferred to the claimant for safekeeping). If property, upon seizure, is transferred for safekeeping to the debtor or members of his family, then the debtor must be warned in writing about criminal liability under Art. 312 of the Criminal Code of the Russian Federation “Illegal actions in relation to property subject to inventory or seizure or subject to confiscation.”

If the amount of debt is over 2,250,000 rubles, remind the bailiff of the need to warn the debtor about criminal liability under Art. 177 of the Criminal Code of the Russian Federation “Malicious evasion of repayment of accounts payable.” In the future, this may provide additional opportunities to encourage the debtor to repay the debt.

If the debtor interferes with the bailiff or refuses to comply with his legal requirements, then he may be brought to administrative liability under Art. 17.14 Code of Administrative Offenses of the Russian Federation. By the way, under this article, any persons and organizations that do not comply with the bailiff’s requests to provide information, transfer money, etc. can be fined.

How can a debtor be restricted from traveling abroad?

The bailiff has the right to restrict the debtor from traveling outside the Russian Federation for six months if:

• the debtor is notified of the initiation of enforcement proceedings,
• the basis for recovery is a judicial act,
• the 5-day period for voluntary execution of the judicial act has expired,
• the debt exceeds 30,000 rubles (and for socially important penalties - alimony, compensation for moral damage, etc. - 10,000 rubles).

If the amount of collection is from 10,000 to 30,000 rubles, then such a measure can be applied after the expiration of two months provided for the voluntary execution of a judicial act.

If, six months after the issuance of the judicial act, the debtor has still not repaid the debt, the bailiff may re-impose a ban on leaving Russia. It is important for the collector to monitor the completion of the specified periods and remind the bailiff of the need to re-issue a resolution restricting the debtor from traveling abroad.

For other articles, comments, notes on the execution of court decisions , authored by lawyers of the INTELLECT Law Firm, see the link .

Debt collection under a writ of execution

A creditor's appeal to court to collect debt under a writ of execution is an extreme case, the occurrence of which is likely only if the borrower refuses to voluntarily repay the loan.

What is a writ of execution

A writ of execution is a document issued on the basis of a court decision and judicial acts that are subject to execution. According to the sheet, it is issued to the bailiffs, the plaintiff and the defendant in the case on the day it comes into force, except in cases where it is subject to immediate execution. The writ of execution states:

• court address;
• court case number;
• date of issue of the sheet and its entry into force;
• information about the defendant (borrower) and the creditor (creditor).

Before the court decision comes into force, the writ of execution is considered invalid and cannot be the basis for forced collection of debt.

Grounds for initiating enforcement proceedings

The reason for the lender to go to court is most often the borrower’s violation of the terms of the agreement, which implies:

• lack of loan servicing for more than 90 days;
• the borrower's avoidance of contact with representatives of the credit institution.

The creditor's right to sue is determined by Articles. The purpose of the statement of claim is to confirm the existence of a debt through the court and the right to claim it. This gives grounds for involving bailiffs in debt repayment, who have tools for forced collection, while bank employees or collectors can only carry out explanatory work with the borrower. Just as the creditor has the right to file an application in court, the client has the right to challenge its legality by filing an objection to the claim.

Objection to a lawsuit

The objection is filed within 14 days from the date of entry into force of the court decision or signing of the writ of execution. It states:

• address of the court to which the application is addressed;
• information about the parties to the dispute;
• number of the case and writ of execution;
• arguments for objections to the material or procedural part of the claim.

To confirm the validity of the objection to the lawsuit, you will need to provide documents, receipts and certificates confirming:

• illegality of the creditor's claims;
• procedural violations when filing a claim,
• inability to fulfill the terms of the writ of execution due to difficult financial situation or other reasons.

In order for the court to consider the application of the defendant (borrower), an evidentiary base must be selected for it, for the collection of which it is best to use the services of a lawyer.

Termination of the writ of execution

Often during the trial, the need for a writ of execution disappears for a number of reasons, including:

• conclusion of a peace agreement by the parties to the dispute;
• the desire of the plaintiff (creditor) to suspend the debt collection procedure;
• inability to contact the client and establish his location;
• the inability to seize the borrower’s income and financial assets, or confiscate his property due to the lack of such;
• expiration of the statute of limitations.

It is worth mentioning that the opening of enforcement proceedings after the limitation period is an offense, and the borrower can challenge it by filing an objection in court. The statute of limitations for debts of individuals is 3 years, after the expiration of which the loan agreement loses legal force, and the creditor’s claim is not subject to consideration in court, as determined.

What happens if you ignore the writ of execution?

The presence of a writ of execution allows bailiffs to forcibly collect loan debt using the following methods:

• seizure of bank accounts;
• freezing of deposits and financial assets;
• confiscation of movable and immovable property.

According to the bailiffs, they can also forcibly bring the borrower to court for a hearing if he refuses to appear there voluntarily. This implies a number of sanctions against persistent defaulters, which involve a ban:

• to open a bank account;
• for the purchase of real estate;
• to travel outside the city, region or region;
• to travel outside of Russia.

These are extreme measures that can be used to collect debt in a lawsuit, therefore it is in the interests of the borrower to negotiate with the creditor at the pre-trial stage or enter into a settlement agreement through the court.

How do bailiffs sell a debtor's property?

The first step is to foreclose on the debtor's funds. Until all of his bank accounts are verified, the seized property will not be put up for sale. Therefore, it is important to find out whether the debtor’s existing accounts have been verified and whether the banks’ responses are on file. If there is no money in the debtor’s bank accounts or there is not enough money, the bailiff begins the assessment and sale of the seized property.

The valuation and sale of the debtor's property is carried out by specialized organizations. The following are sold at open auction in the form of an auction:

• things more expensive than 500,000 rubles,
• real estate,
• securities,
• property rights,
• pledged property that has been foreclosed on to satisfy the claims of a claimant who is not a mortgagee,
• items of historical or artistic value.

The Federal Property Management Agency is responsible for organizing and conducting auctions. Information on the sale of property at auction is published in periodicals and on the auction website.

If the property is not sold after the first auction, the bailiff reduces its value by 15% and puts it up for auction again. If the re-auction does not take place, the bailiff offers the claimant to take back the unsold property with a reduction in value by 25% of the initial price to pay off the debt. If the claimant does not pick up the unsold property within five days after receiving the offer, it is returned to the debtor. According to the law, the sale of property is carried out within two months, but in practice this procedure takes three months to two years (this depends on the efficiency of the bailiff, appraiser, seller, as well as on the involvement of the claimant himself in the sale process).

It is impossible not to mention the simplified procedure for selling property worth less than 30,000 rubles. If such property is seized, the debtor has the right, within ten days from the date of notification of the assessment, to file a petition for its independent sale. The bailiff may give the debtor the opportunity to sell the property within ten days. After receiving the property assessment, the claimant also has ten days to file a request to retain the property. In the absence of a request for independent sale on the part of the debtor or the unsuccessful sale of property by the debtor, the bailiff offers the property to the collector to pay off the debt. If the claimant refuses to accept it, the property is transferred for forced sale in the usual manner.

Thus, the debtor is first given the right to sell property worth less than 30,000 rubles. Then the right to take the property to pay off the debt is given to the claimant. If there are several claimants who filed the petition, then the first will be the one whose demands are higher in the order established by Art. 111 Federal Law “On Enforcement Proceedings”, and if the claimants belong to the same queue - the one whose sheet was received for forced execution earlier than the other.

It is important to take into account that the debtor-citizen has executive immunity established by Art. 446 Code of Civil Procedure of the Russian Federation. Residential real estate that is the only one suitable for residence by the debtor and his family is not subject to sale.

Disputes regarding the provision of immunity to multi-meter buildings and apartments of the debtor still do not subside. The Constitutional Court of the Russian Federation recommended that the legislator develop the necessary legislative framework to overcome immunity for living space exceeding social housing standards, and several bills appeared that failed. Nevertheless, the issue is being discussed, and someday it will be settled.

There are two important aspects worth noting. Firstly, immunity implies a prohibition of sale; seizure of property is not prohibited. Therefore, when opening an inheritance within the value of the inherited property, the heirs will be responsible for the debts of the testator, and if the property is escheated, it will be inherited by the state represented by the Federal Property Management Agency or a municipal entity (if land plots or residential real estate are inherited). It is important that the seizure imposed on the debtor’s residential property is preserved and the enforcement proceedings are not erroneously completed or terminated.

Secondly, while the legislator is thinking about how to correctly foreclose on part of the debtor’s multi-meter residential premises, judicial practice has emerged that makes it possible to allocate part of the property (one or several rooms) and sell it at auction. It's quite bold, progressive, but not too common.

In compulsory execution, an important issue is whether the debtor has common property acquired during marriage. Sometimes all the property is registered in the name of the spouse, and here the bailiff has a rarely used opportunity to request information about such property and seize it until the issue of separating the debtor’s share from the common property of the spouses is resolved.

Is it worth appealing the actions of the bailiff?

According to the law, the requirements contained in the executive document must be fulfilled by the bailiff within two months from the date of initiation of enforcement proceedings. This does not mean that the debt will be collected in two months. Also, this does not mean that the bailiff will issue a decision to end the enforcement proceedings.

The expiration of the deadlines for carrying out enforcement actions and applying compulsory enforcement measures does not entail consequences in the form of the end of enforcement proceedings. The enforcement document may remain with the bailiff for years. Therefore, appealing against the bailiff’s inaction due to a delay of two months may turn out to be futile. A higher official (senior bailiff of the department) or the court will refuse to satisfy such an application.

In practice, appealing the actions of a bailiff leads to excessive formalism in his work on your case. Therefore, it is better to have a trusting relationship with the bailiff.

We recommend complaining to the senior bailiff, the prosecutor's office or the court only when it comes to a significant violation of your rights (for example, if the bailiff commits illegal actions or if there is information and facts that the bailiff is in collusion with the debtor). We recommend that you notify the bailiff of your intention to file a complaint: perhaps the bailiff will correct the mistakes made or stop inaction, and you will not have to complain.

We are confident that the practical application of the recommendations listed in the article will increase not only the effectiveness and speed of collection, but also the likelihood of debt repayment in general.

The article was written specifically for the INTELLECT-S website

Articles of the Group of legal companies INTELLECT-S >>

bankruptcy, execution of decisions, collection services

What are the methods of collecting debts from individuals - 3 main methods

There are many ways to recover debts from individuals - we will consider only legal and humane options.

The most effective method is court, which is also the most long-term and sometimes quite costly. In fairness, the debtor himself must pay the legal costs, but for this the plaintiff must file a separate statement of claim.

Another option is to involve third parties. The creditor formalizes the assignment of rights to claim the debt to third parties - professional debt collectors.

And the third way is pre-trial dispute resolution. The debtor and creditor agree to defer repayment, revise the terms and other options for resolving the problem. In other words, they separate amicably, without bringing the matter to court.

And now about each method in detail.

Method 1. Out-of-court settlement of the dispute

First, the creditor needs to convince the debtor that he will still have to pay back the money and it is better to do this without involving the judiciary.

Try to understand the debtor's motives. Perhaps his financial situation is really difficult, and repayment of the debt on time is impossible for objective reasons.

In this case, agree to postpone the “hour X” to a later time or return the amount in installments. Such agreements must be formalized in the form of official documents.

Threats and psychological pressure are, of course, effective techniques, but in civilized countries they are considered illegal.

You will find more information on this topic in the article “Pre-trial debt collection”.

Method 2. Debt collection by going to court

Court is an almost 100% money back guarantee. Provided, of course, that the fact of transferring money on loan is proven. Plaintiffs in debt collection cases include ordinary citizens, commercial companies, banks and debt collectors.

If the court makes a decision in favor of the creditor, he is issued a writ of execution, according to which the debt is collected either independently (if the amount does not exceed 25,000 rubles) or through the bailiff service.

Sometimes the writ of execution is transferred to the debtor’s place of work - to the accounting department, where finances are written off from the borrower’s salary.

There is another mechanism for collecting debt from individuals. It is called “mandatory proceedings”. Such cases are considered much faster, without litigation, and their result is formalized not in the form of a writ of execution, but in the form of an order for the forced collection of debt.

Writ proceedings are initiated on the basis of the following documents:

• agreement between the parties, certified by a notary;
• an official receipt for the loan of money;
• agreements for payment for products or services.

Indisputable evidence of a violation of the debtor's obligations will also be required. The application is submitted by the creditor to the magistrate’s court at the debtor’s place of residence.

A useful link on related topics is “Debt collection through a notary.”

From June 2021, bank credit debts from individuals (up to 100,000 rubles) are collected in a simplified manner without holding court hearings. True, in order to make a positive decision, recognition of the debt by the debtor himself is required.

Method 3. Selling debt to third parties

The creditor can assign (legal term) the debt to third parties - more precisely, to commercial companies that professionally deal with debt obligations. Such organizations, and at the same time their employees, are called collectors.

True, for their services these people charge a certain (and quite considerable) fee in the amount of half the debt. Banking institutions especially like to assign rights to collection organizations. This practice is unpopular among individuals - I don’t know, fortunately or unfortunately.

The table clearly shows the pros and cons of each method:

Read about how debts are collected from legal entities in the relevant publication.