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Bailiffs: Debtors are hampered by low incomes and envelope salaries – Society and politics – News

She explained that the Civil Procedure Law stipulates that 30% may be deducted from the debtor’s salary and similar payments for the recovery of a credit debt or utility debt, maintaining the debtor’s salary and equivalent payments in the amount of the minimum monthly salary and maintaining for each dependent minor child. funds in the amount of the state social security benefit.

According to the data of the Central Statistical Bureau, in 2019, 910,000 or 65% of the population aged 15 to 74 were employed in Latvia. In turn, 115,600 or 14.3% of employees received the minimum wage or less.

According to Kruka, the number of employees earning the minimum income is high enough, and in this case, if these people also have outstanding liabilities, the amount of income prevents them from making deductions, as a result of which debt collection is delayed or becomes impossible.

The recovery process is also influenced by the high envelope salary indicators in Latvia, which in 2019 accounted for 44.1% of the total amount of the shadow economy. As Kruka explained, in the recovery process it is often found that the debtor has no income at all, as well as other property to be recovered, but if the property is, for example, real estate, it is encumbered by mortgages and after all claims are settled. money is not enough.

Year after year, before the start of the heating season, there are reports that many residential houses have a large utility debt, threatening that if the debt is not paid, the heat service will not be connected to other residents of the house. In this way, shifting the debt burden created by some homeowners to other homeowners, which is neither fair nor legal, the expert explained.

The current regulation stipulates that after the sale of real estate encumbered with collateral, claims for payments for real estate related to the performance of mandatory and other management activities in a residential house are covered after the priority claims have been satisfied, including mortgage creditors. satisfaction of claims.

In order to make the recovery of utility debts more efficient, the Saeima is working on a draft law that envisages amending the procedure for satisfying claims for funds obtained as a result of the sale of real estate encumbered with collateral, Kruka knew.

Kruka explained that the draft law envisages that from the money received for the sale of mortgaged real estate, after covering the expenses related to the sale of real estate, claims related to payments to the savings fund shall also be satisfied in the specified order of priority. for the services necessary for the maintenance of a residential house.

By adopting the above-mentioned amendments to the Civil Procedure Law, debts to service providers, the manager, the savings fund will be covered at least in part and the debt burden on other homeowners will be reduced, Kruka added.

LETA has already reported that in the process of recovery of Riga City Municipality SIA “Rīgas namu pārvaldnieks” (RNP), 27 million euros have been stuck to sworn bailiffs, which have been tried from debtors, the newly appointed Chairman of the RNP Board Ronalds Neimanis told LETA.

According to the information at the disposal of the Latvian Council of Sworn Bailiffs, on September 29, 2020, there are 4606 active enforcement cases in the records of sworn bailiffs, the total debt of which is 25.8 million euros.

From 2018 to 29 September 2020, sworn bailiffs have recovered 8.4 million euros in favor of SIA “Rīgas namu pārvaldnieks”.

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