The changes introduced by the new Bailiffs Act will also affect the receivers

The changes introduced by the new Bailiffs Act will also affect the receivers

From 1 January 2019, a new act on court bailiffs will be in force (Journal of Laws 2018, item 771). It introduces changes to Article 829 of the Code of Civil Procedure regulating exclusions from enforcement, which are directly applicable also in bankruptcy proceedings (through Article 63 of the Insolvency Law).

According to the future wording of Article 829 of the Code of Civil Procedure, the receiver in bankruptcy proceedings will not be entitled to dispose of the listed household appliances, in particular “fridges, washing machines, vacuum cleaners, ovens or microwave ovens, hotplates used to heat and prepare meals, beds, tables and chairs in the number necessary for the debtor and his household members, and one source of light per room, unless these are objects whose value significantly exceeds the average value of new objects of a given type”.

According to the explanatory memorandum to the draft law (p. 45), this provision ‘is intended to prevent the arbitrariness of enforcement bodies whose decisions could lead to the deprivation of the debtor of items necessary for his daily existence’. It also contains clauses that will allow the bailiff, or indeed the trustee, to dispose of movable property with a value above the average value of new items of this type. Such a designation shifts the burden of proving that the object in question can be disposed of to the enforcement authority or to the trustee. The determination of which household appliance is to be sold should be made at the time of taking the inventory. At the same time, it is worth pointing out that in the event of a dispute on this ground, pursuant to Article 49111 of the Insolvency Law, “doubts as to which of the objects belonging to the bankrupt are included in the estate of bankruptcy shall be resolved by a judge-commissary on the motion of the receiver or the bankrupt”.

 

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