Disclosure of the debtor's assets - what is it?

Disclosure of the debtor's assets is one of the effective instruments used in enforcement proceedings. The creditor has the right to submit such an application at every stage of the enforcement proceedings, as well as before and after their initiation. In addition to the creditor, the court is also entitled to submit the application (in the case of ex officio enforcement proceedings) and, in some cases, the prosecutor, non-governmental organization and bailiff.

Application for disclosure of the debtor's assets

In a situation where enforcement proceedings have not yet been initiated, the creditor, when deciding to submit an application for disclosure of the debtor's assets, must submit an enforcement order and prove in the application that it is not possible to satisfy his claim from the debtor's assets known to him at the moment. The situation is similar in the case of submitting an application for disclosure in the course of enforcement proceedings, i.e. it must prove that the seized property is not sufficient to satisfy its claim. After submitting such a request, the court examines it in formal terms and if there are no contraindications (formal defects), it summons the parties to a meeting. During the meeting, the creditor may ask the debtor questions about his assets and place of storage.

Disclosure of the debtor's assets - session

The debtor's presence at the meeting is obligatory, however, if, despite the correct notification of the date, the debtor does not appear and does not provide a justification, the court may impose a fine on him, order him to be brought to the court or even, in extreme cases, imprisonment for up to 1 month. The above sanctions undoubtedly affect the effectiveness of the institution of disclosure of assets.

Disclosure of the debtor's assets - what is it?

Disclosure of the debtor's assets consists in the fact that the debtor should list all his property on the form, including the place where it is located. Very rarely, although it is possible, a disclosure is made orally and is entered in the protocol.

Disclosure of the debtor's assets is used not only in the case of cash benefits, but also in the enforcement of non-cash benefits (e.g. when the debtor hides an item that should be handed over to the creditor).

It should be remembered that the application for disclosure of the debtor's assets does not interrupt the limitation period.