Part Two of Act LIII of 1994 on Judicial Execution deals with the execution of claims for money. Chapter IV of Part Two regulates the garnishment of wages and other emoluments, Chapter V applies to the attachment of sums administered by financial institutions, Chapter VI covers the attachment of movable property (e-note 4) while Chapter VII contains the regulations on the attachment of real property (e-note 5).

The principle of gradualness must be respected during enforcement. Accordingly, if it is anticipated that the claim cannot be collected within a relatively short period of time by means of the attachment of wages or funds administered by payment service providers, any attachable property of the debtor can be attached. Attached real property can only be sold if the claim is not fully covered by the other property of the debtor or can only be satisfied after the lapse of a disproportionately long period.

In this E-note

• Garnishment of Wages and Other Emoluments
• Attachment of Sums Administered by Financial Institutions

Garnishment of Wages and Other Emoluments

The attachment of wages and other emoluments, as well as that of sums administered by financial institutions precedes the more severe forced actions (e.g. attachment of movable and real property).

As regards claims for money, the attachment of wages and other emoluments is the simplest and most moderate and cost-efficient form of pecuniary force.

A garnishment is issued by the bailiff if the execution procedure has already been ordered by the issue of the enforcement order. Another condition is that the debtor has failed to pay his debt within 15 days since the service of the enforcement order. In addition to the garnishment by the bailiff relating to wages, the bailiff can also attach the movable and real property of the debtor as well.

In the garnishment order, the bailiff notifies to the debtor's employer the need to withhold the amount indicated therein and to pay such amount to the garnishor or to transfer it to the bailiff's escrow or other account.

Attachment of Sums Administered by Financial Institutions

The funds of the debtor administered by financial institutions can be attached by means of a court transfer order or bailiff's official transfer order.

Pursuant to the Execution Act, all of the debtor's movable and real property may be seized. Within the framework thereof, the Act focuses particularly on the funds due to the debtor as claims for money must be collected during judicial execution firstly from the funds administered by financial institutions and available to the debtor or the debtor's wages. Any other property of the debtor may only be attached if the foregoing are unsuccessful (cf. the principle of applying enforcement gradually and proportionately).