Col­la­te­ral enforce­ment based on § 825 ZPO

Col­la­te­ral enforce­ment based on § 825 ZPO

Bai­liffs work exclu­si­ve­ly in their assi­gned dis­trict and have many dif­fe­rent tasks to per­form. Con­duc­ting public auc­tions is only a small part of their work. In prac­ti­ce, bai­liffs refu­se such an assign­ment — due to func­tion­al incom­pe­tence (alter­na­tively accor­ding to § 191 No. 1 GVGA) — also with the refe­rence that sui­ta­ble publicly appoin­ted, sworn auc­tion­eers are available. Bai­liffs may refu­se wit­hout giving reasons, sec­tion 191 (1) GVGA. See also: OLG Colo­gne, decis­i­on 30.12.1999 — AZ: 7 VA 2/99.

The short-term and best pos­si­ble rea­liza­ti­on of objects or rights of all kinds sei­zed by the bai­liff on the basis of a judgment is often not pos­si­ble or sen­si­ble on site. The requi­re­ment to keep cos­ts to a mini­mum alre­a­dy pre­vents the judi­cial offi­cer from adver­ti­sing the pled­ged object appro­pria­te­ly. On the other hand, attrac­ting natio­nal and inter­na­tio­nal buy­ers and car­ry­ing out col­la­te­ral enforce­ment is cle­ar­ly within the core com­pe­tence of the publicly appoin­ted, sworn auc­tion­eer. The enforce­ment court aut­ho­ri­zes the auc­tion by ano­ther per­son (the auc­tion­eer) at the cre­di­tor’s request. The appli­ca­ti­on must be made by the cre­di­tor. Plea­se cont­act us if you have any ques­ti­ons. We can give you valuable advice from our prac­ti­cal expe­ri­ence.

§ 825 ZPO Other type of rea­liza­ti­on

(1) At the request of the cre­di­tor or the deb­tor, the judi­cial offi­cer may rea­li­ze an atta­ched object in a man­ner or at a place other than that spe­ci­fied in the pre­ce­ding para­graphs. The judi­cial offi­cer must inform the defen­dant of the inten­ded rea­liza­ti­on. Wit­hout the con­sent of the defen­dant, he may not rea­li­ze the object befo­re the expiry of two weeks after ser­vice of the noti­fi­ca­ti­on.
(2) The enforce­ment court may order the auc­tio­ning of a sei­zed item by a per­son other than the bai­liff at the request of the cre­di­tor or the deb­tor.

Auc­tions accor­ding to § 825 ZPO

Pur­su­ant to Sec­tion 825 (2) ZPO, the enforce­ment court may, at the cre­di­tor’s request, order that the auc­tion of pled­ged items be con­duc­ted by a per­son other than the bai­liff. The gene­ral­ly publicly appoin­ted, sworn auc­tion­eer may be appoin­ted to con­duct the auc­tion. The pur­po­se of sec­tion 825 (2) ZPO is, among other things, to enable the auc­tio­ning of a pled­ged pro­per­ty by the gene­ral­ly publicly appoin­ted, sworn auc­tion­eer if the auc­tion by the bai­liff can­not be expec­ted to yield pro­ceeds cor­re­spon­ding to the true value of the pro­per­ty.

If you need prac­ti­cal infor­ma­ti­on on how to app­ly for an auc­tion in accordance with Sec­tion 825 ZPO, plea­se cont­act us.

If the realization of collateral
is time-critical and confidential:
Contact us.

Contact us