Essential knowledge regarding civil judgement enforcement

Civil judgment enforcement (CJE) is a distinct procedural phase designed to ensure that legally effective judgments and decisions rendered by the Court or Arbitrator are actually implemented. Should judgment debtors fail to voluntarily fulfill their obligation, the State shall apply coercive measures to safeguard the lawful rights and interests of judgment creditors. This process demonstrates the effectiveness and efficacy of the judicial activity while affirming the strictness of the law. 

Below are the fundamental matters concerning CJE: 

Statute of limitations for requesting enforcement 

Article 30 of the Law on Enforcement of Civil Judgments stipulates that the statute of limitations for requesting judgment enforcement shall be 05 years. The determination of the commencement date for calculating this limitation period requires specific attention:  

General commencement date: The 05-year period is calculated from the date the judgment or decision takes legal effect. 

In case the judgment stipulates a time limit for performing the obligation: The statute of limitations shall be counted from the date the obligation becomes due. 

For periodic judgments or decisions: The 05-year statute of limitations shall apply to each specific period, counted from the date the obligation becomes due. 

Upon expiration of the 05-year period, if the judgment creditors do not file a request for enforcement, the civil judgment enforcement agency shall be entitled to refuse acceptance of the case. Consequently, the legally effective judgment or decision will not be guaranteed and subject to coercive enforcement by the State. 

Measures to secure judgment enforcement 

The objective of security measures is to prevent the judgment debtors from the possibility of dispersal, concealment or alteration of the current status of their assets. Typical measures include: 

1. Freezing money and assets held at credit institutions, treasuries, or other depositories. 
2. Temporarily seizing assets and important papers of the involved parties. 
3. Temporarily suspending the registration, transfer of ownership or use rights, or changes in the current status of assets. 
4. Suspension of exit for the obligated person. 

The above measures may be applied by enforcers or be applied at the request of the parties involved. In practice, to ensure maximum protection of their rights, the judgment creditors need to proactively request the application of security measures as soon as the request for judgment enforcement is submitted.  

Measures to coerce judgment enforcement 

In cases where the judgment debtors do not voluntarily comply, the civil judgment enforcement agency shall be entitled to apply coercive measures, including: 

1. Deduction of money on accounts; recovery and handling of money and valuable papers. 
2. Subtraction of recurrent income. 
3. Distraint and handling of assets of judgment debtors, including also those held by third parties. 
4. Exploitation of assets to fulfill the obligation. 
5. Forcible transfer of objects, property rights and papers. 
6. Forcible performance or non-performance of certain jobs. 

These measures may be applied individually or concurrently, depending on the actual circumstances, until the obligation is fully fulfilled. 

Legal consequences of non-compliance   

The judgment debtors who deliberately procrastinate or resist judgment enforcement shall face the following consequences: 

1. The coerced people must bear all costs associated with judgment enforcement and asset handling, such as: appraisal costs, auction fees, security fees during the asset handling process, etc. 
2. In case the judgment debtors have the capacity to execute but do not comply with a legally effective judgment or decision of the Court, even after coercive measures have been applied as stipulated, they may be subject to administrative sanctions or criminal prosecution with penalties ranging from 3 months to 5 years in prison, depending on the severity of the violation. 

Civil judgment enforcement fee 

The civil judgment enforcement fee is a financial obligation arising when the civil judgment enforcement agency undertakes the activity of recovering assets or benefits for the judgment creditors. The fee amount is calculated based on the recovered value of the assets and the percentage within the prescribed regulatory framework. 

Civil judgment enforcement is not only a legal tool intended to protect the rights and interests of the prevailing party, but also a mechanism to ensure the sanctity of law. A thorough understanding of the regulations governing coercive judgment enforcement and the legal consequences of non-compliance will enable enterprises to effectively mitigate risks and protect their lawful rights and interests. 

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