Ljubljana, 15 June (STA) - The MPs passed in a near unanimous vote on Wednesday amendments to the bankruptcy and debt recovery legislation which are to address the problem of default payments and improve the efficiency of debt recovery proceedings. Under the changes, the debtor will have to repay the creditor even before the execution of verdicts is final.
The amendments to the execution of judgments in civil matters and insurance of claims act form part of the government's exit strategy, Justice Ministry State Secretary Bostjan Skrlec told the MPs as he presented the motion.
According to him, the main solutions are designed to protect creditors and facilitate repayment of their claims.
The changes also increase the number of sources through which authorities as well as creditors will be able to track the assets of the debtor. The government believes this will help identify which assets could be seized.
The debtor will have to repay the creditor even before the execution of verdicts is final, and this option has so far been restricted to proceedings in commercial disputes. Appeals would no longer be able to delay debt recovery.
The amendments also bring changes to the certificate of debt. Following an execution based on certificate of debt - even before it is final - the court will have to block the debtor's account immediately and order within five days that the debtor repay the debt.
In case of objections from the debtor, the district courts will have to call proceedings within three months, which the government believes will drastically shorten the duration of the execution.
Appeals by debtors would only be dealt with by the Ljubljana Higher Court. To speed up the proceedings, the appeals will be decided upon by one judge, while a panel of three justices will only be involved in complicated cases.
Under the amendments, lawyers, notaries, executors and the state prosecution will be filing all documents digitally. They will have to meet the technical requirements by September 2011.