The framework of compulsory enforcement

Compulsory enforcement is the ultimate weapon in the creditor’s arsenal when seeking satisfaction of its claim, and serves, in the most literal sense, the administration of justice. In the case of monetary claims, where the debtor fails to comply, the creditor proceeds — on the basis of a court judgment or an order for payment — to attach the debtor’s assets (movables, immovables or claims) and to liquidate them through a public, compulsory and now mandatorily electronic auction. The enforcing creditor is, in the overwhelming majority of cases, a credit institution or one of the servicers.

The debtor’s defence — The stages and the legal remedies

In order to protect the debtor, the legislature affords the possibility of mounting a defence at the various stages of the enforcement process, within a strictly defined timeframe and on specific grounds. The debtor may raise a defence immediately after the attachment by bringing the relevant opposition seeking its annulment, and also after the auction by bringing an opposition seeking the annulment of the auction, of the adjudication report and of the summary thereof. In the latter case, where the successful bidder pursues enforcement for the surrender of the auctioned property, the debtor must bring an opposition against the writ for surrender and immediately file an application for interim measures together with a request for a temporary restraining order, so as to “freeze” the enforcement process. See in detail: Opposition against Attachment and Auction — Complete FAQ Guide and Opposition against an Order for Payment — Complete FAQ Guide.

NPLs and “Red Loans” — The current reality

The greater part of compulsory enforcement cases today originates from servicers (companies that manage claims arising from loans and credit facilities). The distinctive feature: the enforcing party is usually a different legal entity from the original lending bank — a fact that may be exploited in the defence (challenging the validity of the assignment of the claims, the proof of standing to pursue the enforcement procedure, etc.). For a complete guide, see Red Loans and NPLs — Complete FAQ Guide.

Support for bidders — Purchasing a property at auction

Alongside defending debtors, we support prospective bidders throughout the process of participating in a compulsory auction. Our work includes: conducting searches at the Land Registry/Cadastre/Town Planning Office in order to obtain a complete picture of the property’s status (title deeds, lis pendens records, attachment report, etc.); filing applications based on legitimate interest in order to be informed of any legal remedies that have been brought; assessing the prospects of success of such legal remedies; requests for the issuance of a public prosecutor’s order for the receipt of copies of lease agreements from AADE (the Independent Authority for Public Revenue) (verifying the obligations binding on the successful bidder); reviewing the pre-auction procedure for grounds of invalidity; and providing assistance during the electronic auction. See Purchasing a Property at a Compulsory Auction — Complete FAQ Guide.

Services provided

By way of indication:

• Oppositions against the attachment report and the auction.
• Oppositions against the adjudication report and post-auction acts.
• Applications for interim measures to suspend an auction.
• Defence against the abusive pursuit of enforcement by a servicer/bank.
• Challenging the validity of the assignment of claims from a bank to a fund (Law 3156/2003, Law 5072/2023).
• Review of the pre-auction procedure — identification of legal defects.
• Support for bidders — property due diligence, risk assessment, assistance during the electronic auction.
• Negotiation with a servicer for the suspension of the auction and a settlement.

Is there a pending enforcement procedure against you?

Timing and compliance with procedural deadlines are critical to mounting a defence against compulsory enforcement. From the very stage at which the enforceable title is issued — for example, the order for payment — every delay reduces the protective stages available to the debtor. Contact us for a personalised assessment and for designing the appropriate legal strategy.