Order for payment proceedings is a special type of expedited judicial procedure, designed to create an enforcement ground without conducting a full trial on the merits. Its function is to judicially certify the existence of a claim (debt) by issuing an order for payment of a monetary obligation, which bears the characteristics and effects of a court decision. The primary objective of the order for payment proceedings is to verify whether the debtor acknowledges the claim asserted by the creditor or objects to it.
There are two types of orders for payment: an order for immediate enforcement based on a document, such as a notary deed, an act of an administrative authority, etc. (art. 417 of the Code of civil procedure), and a standard order for payment (art. 410 of the Code of civil procedure). This article will examine the core characteristics of the more commonly conducted proceedings in practice, applicable to almost all monetary obligations – the order for payment under Art. 410 of the Code of civil procedure.
What is the procedure for issuing an order for payment?
The order for payment proceedings is initiated by the creditor through submitting an application for an order for payment to the district court, which includes a description of the circumstances from which the claim arises. It is important to note that the law does not require documents to be attached to the application, unless the claim originates from a contract concluded with a consumer. In the latter case, the contract, along with its general terms and conditions (if any), must be attached to the application.
According to the latest amendments to the law, the application for an order for payment is distributed on a random basis among all district courts across the country who have the authority to hear such cases. The judge examines the application and reviews the claim solely based on the applicant’s allegations, without collecting evidence regarding the merits of the debt.
The order for payment is issued within three days of the filing of the application and contains the legal basis and the amount of the obligation that the debtor must fulfill, the costs to be paid, an invitation for voluntary compliance, and instructions regarding the option to object to the debt.
How is the order for payment served?
The order for payment is served in accordance with the Code of Civil Procedure – at the address indicated in the application, which is most commonly the permanent or current address of the debtor. It is important to note that the order may also be served through a third party, such as an adult member of the debtor’s household who resides at the address, or the debtor’s employer.
IMPORTANT! When the recipient of the order cannot be found at the indicated address after three visits within one month, and no person is found who agrees to receive it, the process server shall affix a notice to the door, the mailbox, or the entrance door of the building. The notice states that the legal papers are held at the court office, and if the individual fails to appear and collect them within a two-week period from the date the notice was affixed, the order shall be deemed served upon the expiration of this period. This rule does not apply if it is established that the debtor does not reside at the address indicated in the application at all. In such cases, the order for payment is invalidated.
In practice, upon realizing that a court official is attempting to serve documents, debtors often feel apprehensive about accepting them and may decide to “hide” or deny the process server access to their home to avoid formal service. The procedure described above service by affixing a notice is specifically designed for such instances, allowing the order for payment to enter into force even if the debtor physically refuses to receive it.
The correct approach in such cases is to read the order and, if it is issued on your behalf, to accept it. By doing so, you will have the opportunity to assess whether you, in fact, owe the amounts specified therein and, accordingly, whether to pay them voluntarily or to object to them.
What are the courses of action after receiving the order for payment?
If you are familiar with the obligations under the order and indeed owe them in the specified amount, you have the option to pay them voluntarily. By doing so, you will save yourself potential additional costs associated with the collection of the debt.
If you believe that you do not owe the amounts specified in the order, you have the option to file an objection within a one-month period to object to the debt, without the need to provide any justification. The objection can be filed in writing at any district court in the country (regardless of which court issued the order) or electronically.
If you do not file an objection or don’t pay the amounts within the one-month period, the order for payment will enter into force and will have the effects of a court judgment. Based on the order, the creditor may obtain an enforcement warrant and initiate the enforced collection of their claims through a private bailiff.
If you decide to file an objection, the court will instruct the creditor that they may bring legal action to establish their claim within a one-month period. The creditor will then file a claim, in which they must set out in detail the facts, circumstances and evidence of the amounts owed, and the debtor will have the opportunity to defend themselves in the proceedings.
In the event that no legal action is brought, the order for payment shall be invalidated. However, the creditor does not lose the possibility to bring their claims before the court in the future.
The present article outlines some of the main characteristics of the order of payment proceedings. If you receive an order for payment on your behalf or find a notice to collect an order from the court office, you may contact Dilyan Kolev, attorney-at-law, for comprehensive assistance in assessing the most appropriate approach for your interests and taking subsequent actions on the case.