Amendment to the Code of Distraint Procedure

These costs (i.e. the distrainer’s fees, overheads and other expenses) receive the status of first class receivables when the classification of the distraint estate takes place; this is why they shall be satisfied with priority, i.e. prior to the creditor’s receivable for which the distraint was opened. The change is anchored in the amended second paragraph of Section 68 of the Code of Distraint Procedure (which applies to distraints by sale of movables) or Section 70 (which applies to distraints by sale of a business). The provisions of Section 89 were amended as follows: if the distraint is suspended due to the obliged party’s lack of assets the entitled party shall reimburse the distrainer for both fixed and reasonably spent expenses. Since Act No. 347/2007 Coll. does not contain any transitory provisions, the new provisions shall apply to distraint proceedings commenced prior to the effective date of the amendment.