Property Seizure Procedure
Property seizure is a legally established temporary prohibition or restriction of ownership rights to property or its components – possession, use, or disposal – applied under the laws of the Republic of Lithuania. A proper valuation of the property subject to enforcement is a key condition of the enforcement process, as it involves a change in ownership against the owner’s will.
In property-related court cases, enforcement typically targets the debtor’s property, held either by the debtor or by others. If the debtor is a legal entity, enforcement is first directed at funds held in banks or other credit institutions. If those funds are insufficient, other assets of the debtor are targeted.
Property seizure
A bailiff seizes the debtor’s property by drawing up a seizure report. The bailiff may not seize more property than is necessary to cover the claim and enforcement expenses. Property is valued at market prices, taking depreciation into account and considering the views of the creditor and debtor. If either party objects to the valuation or the bailiff has doubts, an expert evaluation is ordered. Objections can be submitted within five days from the date of seizure or from receipt of the seizure report. If an expert sets the value, that valuation becomes binding.
Civil Procedure Code
The Civil Procedure Code of Lithuania includes the institution of revaluation of property to ensure fair valuation when the market value changes, thereby protecting the rights and legal interests of the parties involved. Revaluation is triggered by reliable information about changes in the property’s value.
Use of seized property
Seized property typically remains with the person from whom it was seized. However, it may be handed over to another party for safekeeping, including the creditor or the bailiff. The custodian may use the property if such use does not result in its destruction or significant depreciation. If the custodian is not the debtor or their family member, they are entitled to compensation and reimbursement of necessary expenses.
The following assets seized from the debtor:
- tangible securities,
- bullion of precious metals (gold, platinum, silver),
- nuggets,
- semi-finished and finished products for industrial and laboratory purposes,
- diamonds,
- as well as jewelry
- other items made of gold, silver, platinum, and platinum group metals,
- gemstones,
- pearls and their scrap are handed over for safekeeping to the bank serving the bailiff in the locality where the court is located.
If enforcement is directed at real estate or other property subject to registration in accordance with established procedures, the bailiff determines whether all such property belongs to the debtor, what its actual value is, and whether it is mortgaged, seized, or subject to other restrictions. Before the sale of such property, written data from the relevant registry authority confirming the ownership of the property by the debtor and any encumbrances must be obtained and included in the enforcement case file.
Summary
If the bailiff fails to follow legal requirements or ignores objections, the creditor or debtor may lodge a complaint. If a breach is found, the court will declare the act unlawful and order the bailiff to repeat the procedure.