Recognition and enforcement of foreign judicial verdicts/ court rulings in Spain.
In the event that a client gets a favourable court ruling/verdict in a foreign country but the Spanish debtor has no assets there, our lawyers in Spain provide services enforcing foreign court rulings against debtors established in Spain, in accordance with the international treaties and reciprocity rules between both countries.
We recommend that you solicit this process when the debtor is Spanish or is resident in Spain, which makes it likely that he possesses assets in Spain. Our job is to bring him to book by ensuring that his assets are seized during the cause of an enforcement procedure. We also advice, that the creditor make haste, because he won’t be able to check the debtor’s assets until the enforcement process is in course, so it is basic to apply for this legal process (recognition) as soon as creditor finds out about any Spanish links.
We check the regulations that are applicable in your case, as well as the possibility of suing the debtor on the basis of the reciprocity law agreement between both countries establishing the terms of foreign verdicts application, recognition and enforcement. We also advise you as regards the practical implications of the translation of the judicial verdict, and the legalization process.
After checking the verdict and considering the viability of enforcing it here in Spain, we start the process on the basis of the court ruling provided by the client, and once it is finished, we enforce it in order to seize the debtor’s assets. In most cases, we only negotiate an amicable solution when the creditor requests it.
We check the terms of the verdict in order to make sure the enforcement is possible under the E.U. International treaties or reciprocity regulations, putting into consideration the subject of the verdict, the Court where it was issued, and its date.
Then we apply to obtain a report as regards all vital information about the debtor, through the official Registry responsible for keeping these records. This way we can certify that such a name still exists in their records. And although the information obtained from the registry would not be able to confirm his current employment status, it will however expose his current economical situation.
After regulation and carrying out a routine check on the debtor, we will decide to go ahead with the recognition process if we believe that the debtor may withhold some assets to be seized, and if the client decides to go ahead anyways. At this point we will ask for the foreign verdict and the creditor information (incorporation deed, Power of Attorney or/and passport) to be translated to Spanish by a Sworn Translator and legalized with the Hague Apostile. If your country is not a member of the Hague Apostile Treaty, the verdict must be legalized by your Foreign Affairs Ministry and then, by the Spanish Embassy in your country.
We will hire an a Attorney (a Procurador) which is necessary in Spain for civil matters when it concerns debts over 2.000 Euros. Pay some required taxes if the creditor is a company as opposed to a physical person. Conclusively write and submit the application in the courthouse where the debtor is resident or has a branch. Our solicitors will handle every single court notification and request in order to get the approval as soon as possible, as well as applying for any deadline extension in the event we need some other documents or stamps.
If the Spanish courts finally decide to approve and recognize the foreign verdict, we will now proceed to enforce it according to Spanish civil process law. This means that their assets will be seized. Even if the creditor states that the debt was paid or less than the requested amount. Moreover, once the enforcement procedure has started, the creditor is able to apply for the investigation of his assets through a telematic application (“Punto Judicial Neutro”), which allows for a thorough investigation through the Tax Office, Land Registry and Social Security System.
This process does not expire, so in case the debtor has no assets, it is possible ever so often to ask for a periodical assessment of his assets, to find out if his financial situation is better. In the event the debtor is a company and is going bankrupt, we recommend to make an appearance to the court where the bankruptcy process is filed, presenting the enforcement verdict, in order to be included in the debtors list.
After the enforcement procedure is approved, the court will allow us to apply for the debtor assets investigation and in several parts of Spain, for an automatic bank account balance seizure too. This application can be done and approved before the debtor has the opportunity to submit an opposition statement (oposición).
When it is established that the debtor has money in their bank accounts, the court will order and ensure that the amount owed will be automatically transferred to the court’s bank account (currently in Banco Santander) including 30% of the debt to cover the interest and procedure costs. Afterwards, the court will grant a warrant that allows the creditor or his attorney to withdraw the money from the bank.
In the event that the debtor has no money in the banks but has any sort of property, after certifying ownership from the land registry, we would demand that the court house orders an embargo for the said property to be seized, as a guarantee for the debt. At this point, even if the debtor sells the property, the seizure order does not disappear, it stays in effect until he has cleared his debts. However, sometimes the court doesn’t allow a property seizure if the debt amount is much smaller in comparison to the property value.
An enforcement process requires quick action to make sure the debtor won’t sell his assets before he’s sued. That’s why we don’t recommend to start any negotiations unless the enforcement process had begun. However, if the debtor has big solvency like a bank or an Insurance company it is possible to do so.
Once the debt is recovered, the Attorney secures the money and transfers it to you, or we keep the warrant until you are present to make the withdrawal yourself.
Would you like to speak with one of our solicitors today to discuss your options? Contact us using the form below or call us at +34 617 608 069.
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