Seizure of movable assets in the enforcement of interim relief

Conversations with court bailiffs suggest that successful enforcement against movable assets is now a genuine rarity. Movable property is the easiest to hide or transfer, and the current state of the law does little to help creditors obtain satisfaction from items which the debtor claims belong to third parties.

On the other hand, the seizure and removal of certain assets – vehicles in particular – can be so painful for the debtor that it often leads to prompt repayment of the debt. In certain situations, enforcement against movables can therefore be a highly effective tool for obtaining satisfaction.

That was precisely the case in a matter we handled for our client, one of the largest food producers in Poland, which had delivered its products to what turned out to be a dishonest counterparty.

A review of the debtor's current position revealed that he had transferred ownership of all the real property he had previously held to persons close to him, and had registered a business in the Czech Republic. He had also begun using Czech and Austrian payment accounts.

After a court order granting interim relief in respect of our client's claim had been obtained, the bailiff attended one of the debtor's former properties, where he found the debtor's partner – and, parked on the driveway, a Porsche Cayenne GTS and a BMW i3, both on Czech number plates, with a combined value exceeding PLN 1 million.

Both vehicles were seized and towed by the bailiff to a secure storage facility.

Despite his numerous assertions, the debtor was unable to produce any evidence that the vehicles belonged to third parties. Instead, within two days, he repaid the debt in full.