TNBiz (TNBiz)
Business  |  September 26, 2011 11:00:05

Execution costs and legal fees will be in simple disputes may be lower

PRAGUE (MEDIAFAX) - The costs for recovery in nalézacím and enforcement proceedings when the debtor's voluntary payment may be reduced in the next year by more than 40 percent. It provides for an amendment to the decree on Monday the media presented the Minister of Justice Jiri Pospisil (ODS).

"We greatly increasing number of executions ordered. Therefore, we believe it is important to think about whether the rewards they receive bailiffs and lawyers, are adequate," Pospisil said the minister, adding: "It clearly shows that the discrepancy between the amount claimed and execution costs. Our goal is to reduce costs by 40 to 50 percent. "

The cost is higher than the amount claimed, several times. As an example, the Minister said a man who forgets to pay a fine in the MHD must pay the costs up to 15 thousand.

The Ministry therefore wishes in simple disputes to reduce the costs of legal representation and execution. "Our goal is to change the fees for individual disputes where there is no real legal disputes, where there is the fact that the lawyer went to court and there would be representing a client," explained the minister.

The amendment regulations reduced flat fee of 50 percent for legal representation in simple cases in which the lawyer makes less than three steps: taking things, writing a proposal for a payment order, attendance at the hearing. In practice, this will reduce the costs in cases in which attorney representation, and shall assume the payment order.

Execution costs are reduced by voluntary compliance after the start of execution. The amendment favors those borrowers who, after initiation of enforcement proceedings shall pay the debt within 15 days of receipt of notice sent to the court bailiff.

The executor tariff, lump sum compensation for expenses reasonably incurred by the bailiff in these cases reduced by half, ie to 1750 crowns.

While currently ascend the cost of recovering the amount of 1,001 crowns to 17,600 crowns, short stories received after these costs climb to 10 100 crowns. Overall, this will reduce costs for the borrower to 42.61 percent.

"It is a decree, the change could be relatively fast. We would be happy if it came into effect early next year," he added.

Ministry of Justice proposed amendments discussed with the leadership of the Czech Bar Association and the Chamber of Executors CR.

(The report issued photo agency unless otherwise indicated.)

Karolina Brožová,

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