EXECUTION PROCEDURE IN CROATIA FOR DEBT COLLECTION

Unpaid debt

As a first step, official warning letter is send to the debtor. If there are no response from the debtor, in the first stage of the debt collection procedure in Croatia, the creditor commences the appropriate execution procedure by forwarding to the debtor the so-called Motion on the Execution Based on the Reliable Documents (reliable documents = invoices or excerpt from the creditor’s business books) through the notary public. In case of the debtor’s objection (debtor can file the objection to the notary public within 8 days as of receipt the creditor’s motion is revoked and is dealt with as an ordinary complaint (lawsuit)

in a lack of debtor’s objection, the Decision on execution will become final and binding, Financial Agency issues the order to all banks in Croatia to seize all of the debtor’s bank accounts. In case there is not enough assets on the bank accounts to settle the claim, debtor’s savings accounts and deposits are also seized. Additionally, it seems that this seizure also refers to all bank accounts the debtor might possibly open in the future.

MAIN SPECIFICS OF THE EXECUTION PROCEUDURE IN CROATIA

  • In order to initiate the execution procedure before the Public Notary; the creditor should have its PIN (Personal Identification Number) obtained before local Tax Department (this is the legal requirement envisaged under the Croatian Execution Law). Obtaining the PIN is a simple corporate action.
  • During the execution procedure, two original copies of invoice/s issued to the debtor, executed with corporate seal of the creditor and signed by its responsible person for billing matters must be submitted to the Public Notary. Alternatively, we can use the official excerpt from the creditor’s business books executed with creditor’s corporate seal and signed by its responsible person for billing matters. Furthermore, the foreign invoices/excerpts from the creditor’s business books must be translated in Croatia (to a Croatian language by the officially appointed court expert).