Citizens Will Be Able to Manage Seized Property in Certain Cases

The government intends to introduce a new system for calculating enforcement costs. During the session of the National Assembly's Permanent Committee on Legal Affairs, Deputy Minister of Justice Levon Balayan presented a draft law on "Enforcement Proceedings" and accompanying amendments to existing laws, emphasizing that the aim of the package is to establish unified legal concepts and to implement an effective and comprehensive toolkit for protecting the rights of participants in enforcement proceedings and interested parties. It also aims to institutionalize the necessary legal bases for the compulsory enforcement system.

“Continuing the government's adopted policy of alleviating the burden on citizens, we are introducing a new system for calculating enforcement costs. Currently, a 5% enforcement charge is continuously calculated on monetary obligations, regardless of the actual actions taken. With this initiative, if a citizen voluntarily pays and fulfills their obligation within two weeks of the initiation of proceedings, only a 2% enforcement charge will be collected,” Balayan stated.

According to him, a new mechanism is being introduced whereby both parties can mutually agree to defer the execution of the obligation, modify the method of enforcement, or change the execution terms. Previously, this was possible only through a separate court order, which required additional expenses and time from the citizen.

“From now on, the citizen involved in the proceedings will be able to manage seized property in certain cases, rent it out, or independently sell it off-market, paying the rent and sale price to the deposit account of the enforcement service,” the deputy minister noted.

The package of projects fully introduces an innovative and ambitious idea by abandoning the outdated institution of enforcement sheets, freeing both the citizen and the court from the phase of issuing enforcement sheets that lack substantive content. The processes of deferring court decisions, modifying terms, defining methods of enforcement, replacing them, and applying compulsory measures on the share of the debtor in the legal entity's statutory share capital will be transferred from the court to enforcement proceedings. According to the reporter, this will significantly reduce the burden on courts.

The government initiative also includes the introduction of an electronic notification system for individuals and legal entities within the framework of enforcement proceedings, whereby citizens registered in their personal office will be notified of the proceedings through the office and associated email, with their consent.

“Along with the newly launched electronic system, the regulations of this initiative will ensure the complete digitalization of enforcement proceedings,” Balayan emphasized.

The reporter responded to the questions of the deputies, addressing the management of seized and illegally obtained property, studying international practices in the field, the transparency of auctions organized by the enforcement service, and the seizure of individuals’ bank accounts as a result of enforcement proceedings. The deputy minister noted that the decision regarding the amount of seizure is made based on the amount necessary to fulfill the obligation, including enforcement costs.

“This year, we launched a new electronic program that addresses this issue. We believe that there will be no such complaints going forward,” he added. The initiative received a positive conclusion.