Auction of a vehicle that is owned by the debtor
A car is a movable property within the meaning of civil law. The question is whether the vehicle can be auctioned? Like any movable property belonging to the debtor, the car may also be seized by a bailiff and auctioned. The legal basis for this is Art. 845§1 of the Code of Civil Procedure. The aforementioned "seizure" by the bailiff is the first stage leading to the auction of the vehicle. Seizure should be understood as placing an appropriate entry in the report kept on the enforcement activities carried out by the competent court bailiff. Also in the same protocol, the bailiff indicates the value of the property seized. If it is uncertain as to the actual value of the vehicle, or if one of the parties (the creditor or the debtor) does not agree with the value of the property presented in the protocol, the bailiff calls an expert expert to assess the movable property.
What does an auction of a vehicle seized by a bailiff look like?
Following the attachment, the debtor's car may be sold by public auction. The provisions of the Code of Civil Procedure regulate in detail the requirements for the proper initiation and conduct of an auction. The first auction of a vehicle may not be scheduled earlier than the seventh day following the attachment. Prior to the commencement of the auction of the vehicle, the obligatory requirement for the bailiff is to notify the debtor in which he will indicate the exact date, time and place of the auction. Such notification must be made by the bailiff at least three days before the planned auction. At the first auction of the vehicle, the starting price is determined, which is governed by the provisions of the Code of Civil Procedure, and amounts to ¾ of the estimated value of the car sold.
The second vehicle auction and the value of the movable property
In the event that the first auction of a vehicle does not bring the desired effect, the date of the second auction is set. At the second auction, the price of the vehicle drops to half the estimated value of the movable property. Any bidder who wishes to participate in b must provide a guarantee of 1/10 of the total of the estimate of the movable property. This warranty is refundable to all participants except the bidder who offered the highest value, ie won the auction. This is a security measure in the event that the bidder, having received the confirmation, fails to pay, because in such a case he loses his warranty irretrievably, which is intended for the costs of enforcement, and its surplus is included in the sum obtained in enforcement, and in the case of cancellation of the enforcement - it is transferred to The Treasury.