The
seizure of assets for debts
is one of the assumptions that apply in case a debtor does not satisfy an amount.
In this case, the judicial machinery will be activated and the different assumptions recognized by Spanish legislation will be applied.
Stay tuned to this article because we give you details about how the procedure works and the types of liens that exist.
How to act before a seizure of assets for debts
Debt attachments can be due to two main casuistries: own debts or debts of others.
However, the procedure to execute them is similar in both cases, hence it is convenient for you to know it to take action.
Although this aspect is unknown to many people, no private creditor can unilaterally initiate a seizure proceeding.
You have to remember that, once the judgment is final, the debtor has 20 working days to satisfy the debt (Article 548 of the Code of Civil Procedure). Otherwise, after the period the creditor may claim the execution of the judgment.
An exceptional case is that of debts with the Tax Agency or with the Social Security. In these cases, the Administration carries out the seizure proceedings ex officio and, consequently, the process does not go through the judicial seat.
As a general principle, it is advisable to seek conciliation. Most financial institutions or third parties prefer to charge late than never do it.
Therefore, taking calls when the bank wants to transmit a problem to you or approaching the offices to reach an agreement is recommended.
Types of debt liens
Seizure of assets for own debts
The seizure of assets for your own debt is the most common assumption, since it has to do with those commitments that you have signed, either with the bank or with a company.
Basically, it is that if you do not face a debt through the funds of your current account, you will have to do it with other funds or with your assets.
Seizure of assets for bank debts
The seizure of assets for bank debts is one of the most common assumptions and, in fact, in any loan or credit this possibility is indicated.
The exception is the mortgage,since the non-payment will involve the seizure of the house, which is called foreclosure.
Among the types of asset seizures for bank debts,they stand out from online stores that receive their income from the sales of physical products, to websites that are dedicated to creating content to include advertising and charge for it. Others, on the other hand, take a commission for recommending the purchase of third-party products.
In each case, the activity can be understood as habitual in a different way.
Seizure of assets for credit card debt
Although credit cards often have low limits, you may be garnished for credit card balance.
If this happens, we recommend the restructuring of the debt, proposing to the company a fractional payment.
Seizure of assets for debt to a third party
Debts to a third party are also grounds for attachment. We will normally refer to unpaid invoices that exceed a certain value; they are usually invoices for the purchase of goods or supplies.
A common case is that of debts with the Tax Agency or with the Social Security.
Seizure of assets for debts of others
The seizure of assets for debts of others is a very common assumption and that occurs due to three specific circumstances:
- For being a guarantor.
- For being a spouse.
- For being heir.
In all three cases they will only resort to you, either because they cannot charge the main debtor, or because you have expressly agreed to take charge of the inheritance.
Seizure of assets for being a guarantor
In this case, the seizure of goods will come if you have guaranteed a person in a loan or credit and he does not respond to the installments.
At first, they will require you to face the payment or negotiate and, if you do not, they will initiate the seizure procedure to ensure the collection.
Attachment of joint property for debts of a spouse
It is important to indicate that this assumption only occurs in the event that the legal regime of community property in the marriage has been chosen.
Thus, the other party will respond jointly and severally for the debts that his spouse has, and the estate may be seized. In this case, it is important to renegotiate with the creditor.
Seizure of assets for debts of an inheritance
The seizure of assets for debts in an inheritance can never be a priori. You can know the status of the inheritance before accepting it because, in case of rejecting it, you will not have to be responsible for any expenses.
Now, if you accept the inheritance, you accept the debts and, if you cannot pay them, you can be seized.
Of course, you should know that, in Spain, you have the possibility of requesting an extension in the payment of Inheritance Tax to satisfy the debts.
conclusion
As a general principle, when facing a
seizure of assets for debts, it
is important to negotiate with the creditor some type of fractional payment or a restructuring.
As we have said, in the vast majority of cases they prefer to charge late to never charge.
On the other hand, you must remember that the seizure can only be decreed by judicial instance or ex officio by agencies dependent on the Administration.
If you are facing a situation of seizure of your assets and do not know how to act,
contact AYCE Laborytax
so that we can advise you in the resolution of that case as soon as possible
