What the Enforcement Authority is allowed to seize

Seizure means that the Enforcement Authority has decided that some of the debtor's property shall be used to cover the debt owed the creditor. A seizure follows a certain order, and the Enforcement Authority always seeks to seize property or assets which result in the least damage to the debtor. Property which the debtor and their family require for their subsistence cannot be seized.

Seizure

A seizure always begins with the Enforcement Authority inquiring into the debtor's assets. In connection with this, we can make enquiries with different authorities/companies/individuals or, e.g., visit the property for an "execution". The aim is to find out whether the debtor has assets which can be seized. Anything we find, we can take away immediately, where physically possible.

The seized property is then sold either by the Enforcement Authority or by another party commissioned by the Enforcement Authority. If it is a matter of attachment of salary, the employer pays the money to the Enforcement Authority.

Finally, the Enforcement Authority distributes the money between the various creditors.

Prerequisites for seizures

Before the Enforcement Authority can seize any property, the following prerequisites must be met:

• The property must belong to the debtor. If it is in the debtor's possession (normally in the property), it is presumed to belong to the debtor, unless the debtor can prove otherwise. If the property is located elsewhere, the Enforcement Authority must be able to prove that it belongs to the debtor.
• It must be possible for the property to be transferred, i.e., it should be resalable.
• The property must have a value. The aim of the seizure is to ensure the creditor is paid. The assets to be seized must therefore have some financial value. They must constitute money or something which can be exchanged for money through sale.
• There must be a reasonable surplus. Once the Enforcement Authority's costs for the sale have been deducted, what is left of the seizure must provide a reasonable surplus for payment of the debt.
• A financial collective must not be separated. Assets which belong together cannot be separated without special reasons — the reason being that these assets are often worth more than the sum of their parts, if sold separately. It is for example not permitted to seize only the inboard motor from a motorboat, even if the motor's value alone is enough to cover the debt. The same applies for, e.g., the wheels of a car.

What does the Enforcement Authority seize and in what order?

Under normal circumstances, the following order applies:

• Cash funds (money).
• Bank balance and other liquid assets which can be taken immediately, e.g., tax returns.
• Salary. The Enforcement Authority may decide that a part of the debtor's income (salary, pension, holiday compensation or other) goes directly towards payment of the debts. If, as a result of the attachment of salary, the debtor is expected to be able to pay off the debt within three months, the Enforcement Authority will not normally seize more assets.
• Mutuals funds and shares. When mutual funds and shares are seized, the Enforcement Authority informs the bank or Euroclear, who registers that the property has been seized.
• Other personal property. The Enforcement Authority may for example seize a tenant-owner´s apartment or a claim held by the debtor.
• Immovable property (e.g., a detached house, a holiday home or industrial real estate). Properties can be seized if the debtor does not pay the loan that the property is mortgaged for. The property can also be seized for other debts when it is worth more than the loan. Before the Enforcement Authority seizes a property, the creditors are asked whether or not they wish for this to happen.
• Ships, aircraft, disputed claims, etc.

Do parties liable for payment lose their homes?

The Enforcement Authority goes to great lengths to avoid seizing homes (tenant-owner´s apartment or real estate), but in certain cases this is necessary to facilitate payment of the debt - even if it is a matter of a small debt.

A prerequisite for the Enforcement Authority being able to make a seizure is that there is a surplus following sale once all related costs are paid. There are no stipulations as to how large the debt must be for the Enforcement Authority to seize the home.

What the Enforcement Authority does not seize (beneficium)

Certain property cannot be seized by the Enforcement Authority. In some cases, because the debtor or family is considered to require it for their subsistence. Such property is called a non distrainable asset.

Money, bank balances and claims can be seized unless it is clear that the money is required for the family to support itself over the next month. This entails necessary expenses such as food, rent and clothing. Expenses for necessary travel or special care may also be included.

What is considered a non distrainable asset is decided on an individual basis. This means that the same type of property may be considered a non distrainable asset in one case but not in another. It is however common for the following to be considered as non distrainable assets.

• Clothes. (Expensive fur coats and similar items may however be seized.)
• Spectacles, watches and simple jewellery.
• Furniture and other items essential in a home.
• Special equipment for a handicap.

What happens if the seized property cannot be sold?

If the seized property cannot be sold and the debt remains, the Enforcement Authority normally makes another attempt to sell the property. If the property does not sell, the seizure is cancelled and the debtor has their property returned to them.