Over the past five years, the worst situation was in 2011, when it was ordered more than 959,000 foreclosures. Since then, the their annual decline, which experts attributed the significant changes which introduce the ministers of justice in recent years.
Increasing the court fee
"We can mention only a significant increase in court fees at the end of 2011, at which the electronic payment order increased from CZK 300 to CZK 800 at present." It lists the changes in debt collection Kateřina Procházková, spokeswoman portal poradnaveritele.cz. But that's not the end of changes introduced. Almost immediately after the court fee increase followed by a drastic curtailing rewards executors and lawyers.
Reduction in remuneration executors and lawyers
"In March 2012, approached the then Justice Minister Jiri Pospisil to the next step, and it significantly curtailing rewards executors and lawyers. At lower amounts were executors reduced fee up to 70 percent, with higher then 30 percent. On average, mentioned the reduction half. In addition to introducing a requirement to send reminders to borrowers pre-trial, "recalls Procházková and adds that it is also necessary to mention the rapid intervention of the Minister of Justice Helena Válková of July 2014, when again decreased significantly lawyers in small claims, both in discovery and in the enforcement proceedings.
Yet the number of foreclosures rose
Why? Above this question puzzled many experts, but few dare to give her a satisfactory answer. The increase in foreclosures in the first half of 2014, the Chamber of Executors explained so that lenders in the first half of a hurry to get them even attributed higher fees for legal representation. Logically, then the expected decline in the number of executions ordered during the second half of 2014 and had the same expectations and the Czech Bar Association. This did not happen. With the exception of November 2014 was during individual months no partial decrease compared to 2013 was recorded.
We have perhaps a greater appetite to judge?
Kateřina Procházková believes that the current developments in the field of foreclosures related to a number of factors. From the still low level of financial and legal literacy of ordinary citizens, despite the continuing trend in debt, when borrowers take a larger number of smaller loans, which then are unable to repay. "And in the list should definitely not miss even greater courage to individual borrowers to sue. In practice, we observe that in litigation tackles not only the company, but also a number of small private creditors who lent their friends. Finally, the rise in foreclosures influenced by the fear of the upcoming territoriality executors. That in the last year doing a lot of lenders worry, "says Procházková and delivers it to a more objective analysis of 2014 we will have probably a one month wait.
Source: tz Poradnaveritele.cz