How is Convicted Debt Executed?

When a provision is made for the payment of a bad debt before the court, the provision may be executed in the following ways;

• If the provision is for bad debt, the enforcement officer may collect this debt together with all expenses incurred, from the debtor in cash or by credit card, as soon as the enforcement is filed.

• The debtor can pay the debt in up to 4 installments according to the decision by the court.

• If a movable is to be sold to pay the debt, the court may order the sale of movable goods, including shares as well as their registration to be made in the name of the purchaser.

• Movable properties that are determined to be worth five times the minimum wage can be sold by auction or in any other form of sale that the court deems appropriate. If it cannot be sold at an auction, it will be kept for sale until it is sold and during this sale period , the sale price may be reduced as and when the court deems appropriate.

• If company shares are confiscated, they are offered for sale by an auction in accordance with the provisions of the Companies Law.

• Any movable property which is situated in the residence, or under control or in use of the debtor shall be treated as if it belongs to the debtor and shall be seized. This also applies to vehicles that are used by the debtor, even if they are registered in the name of someone else. The burden of proving that these goods do not belong to the debtor is upon the third parties claiming to be the owner. These persons are obliged to prove to the court that they have made a payment for the relevant immovable property. Thus, the risk of evading property from execution by fraud is prevented.

• The rules of the above article do not apply to movable properties left to the lessee by the landlord, or to those properties clearly belonging to a family member of the debtor, and the properties which are for the personal use of a family member of the debtor under the age of 18.

• If there is a monetary judgment against the debtor, the amount in the debtor's account with any bank in the TRNC can be seized. In joint accounts, the account holder other than the debtor has the right to object under the above conditions. The bank or cooperative is obliged to provide information about the debtor's bank account upon a written request. If he/she does not provide the necessary information, he/she will be prosecuted.

• If this account is serving as a salary account, an amount equal to one current monthly salary of the debtor in this account is exempt from lien. This situation aims to ensure that the debtor can continue his life in a manner worthy of human dignity.

• Any salary (including all regular income but excluding alimony and social assistance) that the debtor receives from either the private sector or the state, may be obliged to pay his convicted debt. The employers concerned with the matter are obliged to provide information on the salary paid to their convicted employee. In the meantime, if the debtor is dismissed from work and therefore his salary has been stopped, the employer is obliged to notify the court or the debtor's lawyer or the debtor. If such an order is received, the employer is obliged to deposit the relevant amount directly in favor of the creditor, if they do not, a prosecution may be initiated against them.

The above-mentioned executive procedures can only be implemented for a certain period of time from the date of judgment. The provision for the payment of a debt is valid for 10 years from the date of receipt of the provision. The registration period can be extended for periods of 2 years if the extension is made before its expiration. The Land Registry Office is to be notified of such an extension..