Many creditors assume that recovering a debt always means a long lawsuit. The law offers a shorter route when the debt is recorded in a commercial paper such as a cheque, promissory note or bill of exchange.
Commercial papers are enforceable instruments
Article 9 of the Enforcement Law lists the instruments on which compulsory enforcement may be based, and commercial papers are among them. The holder of a cheque or promissory note can therefore apply directly to the Enforcement Court without first obtaining a judgment on the debt.
If the debtor refuses to pay
Once the debtor has been notified of the enforcement order and the statutory period passes without payment or disclosure of sufficient assets, the enforcement judge orders the measures set out in Article 46 of the Enforcement Law, including a travel ban, a stop on issuing powers of attorney by the debtor, and disclosure and attachment of the debtor's assets up to the amount owed.
Practical tips
- Before accepting a cheque or note, check that all its statutory particulars are complete; missing particulars can strip it of its status as a commercial paper.
- Do not delay presenting a cheque or acting when it is dishonoured, as commercial papers are subject to statutory time limits.
- Keep the original paper and any proof that the cheque was dishonoured; these form the basis of the enforcement application.
- If your debt is recorded only in an ordinary, unnotarised contract, you may need to file a lawsuit first, which is why documenting rights properly from the start matters.
If you hold a cheque or promissory note you have not been able to collect, contact us and we will handle the enforcement process for you.
This article is for general awareness and does not constitute legal advice. Contact us for an opinion on your specific case.