2024-07-29 04:01:23
Seizure involves the retention of the assets of a person or entity for non-payment of a debt. Here are some key points about this legal measure.
An embargo is a legal measure that a judge or competent authority may order to secure payment of a debt, and involves the retention of the assets of a person or entity being sued, according to Ecuadorian law.
A bank or other creditor may resort to this legal action to recover money from an unpaid loan or service. This measure can cause a lot of fear for the debtor if he is not in a position to pay the debt at the time.
César Coronel, a lawyer from the legal services company Defensa Deudores, clarifies some doubts about this procedure:
What is required to execute a seizure?
For a seizure to be carried out, there must be a claim for collection or coercive procedure, and a court order or a competent authority. In addition, the creditor’s request. In the case of vehicles, the seizure is carried out by means of a registration in the Commercial Registry, and in the case of real estate, such as a house, the procedure must be carried out in the Property Registry.
What assets cannot be seized?
Most of a person’s assets can be seized. However, Article 1,634 of the Civil Code establishes exceptions, such as:
The bed and clothing of the debtor and his family.
Books related to the debtor’s profession.
Machines and instruments for teaching some science or art.
Utensils for the work of artisans or farmers.
Food and fuel needed for one month’s consumption.
Workers’ salaries and retirement pensions are also not subject to seizure, except for the payment of alimony, in accordance with articles 328 and 371 of the Constitution.
Furthermore, according to article 839 of the Civil Code, assets that form part of the family estate cannot be seized.
Properties acquired with loans from the Ecuadorian Social Security Institute (IESS) cannot be seized, except for the payment of IESS credits, according to article 70 of the Social Security Law.
Is seizure and removal of assets the same thing?
No. During the seizure, an expert or judicial custodian makes a list of the defendant’s assets, until the amount of the debt is covered. Subsequently, these properties are removed and finally auctioned off.
How long does it take for the goods to be collected?
There is no specific time limit for the removal of property; several factors may influence this, such as the debtor paying the debt or, on the contrary, the auction of the property. In addition, it varies by type of property; in the case of a vehicle, the removal may be immediate. However, in the case of real estate, such as a house, the eviction is not immediate; it can continue to be inhabited, but it cannot be sold.
Can third party assets be seized?
The assets of third parties, including the debtor’s family members, except for the debtor’s spouse, cannot be seized as co-debtor.
How to avoid embargo?
The debtor can avoid the seizure or auction of the assets by reaching a payment agreement with the creditor or by presenting legal exceptions, through a lawyer. #bank
By: PRIMICIAS