CHANG TSI
Insights
Compulsory execution is a continuation of the legal proceedings and serves as an important legal tool for realizing creditors' claims. Its core purpose is to compel the debtor to fulfill their obligations through judicial authority, or in cases where the debtor is unable to do so, liquidate their assets in accordance with the law to satisfy the creditor's rights. However, the complexity and diversity of the execution process demand that legal representatives not only have a solid grasp of legal knowledge but also possess practical operational skills.
Therefore, the purpose of this paper is to provide theoretical and practical support for compulsory execution in judicial practice by exploring the types of property involved in compulsory execution and the methods of enforcement.
In compulsory execution, there are many types of property available for enforcement, involving various assets of the debtor. Based on the nature and characteristics of the property, they can be categorized as follows:
1. Movable Property: This refers to property that can be moved, including but not limited to cash, bank deposits, securities, machinery, vehicles, furniture, stocks, and bonds. This type of property is easily movable and sellable, making it commonly targeted in compulsory execution.
2. Immovable Property: Immovable property refers to property fixed in a specific location, such as land, houses, buildings, and land use rights. Immovable property generally holds higher value and has stable appreciation potential, making it a key target for creditors.
3. Intellectual Property: Intellectual property includes intangible assets such as patents, trademarks, and copyrights. Although intangible, these assets are increasingly important in the modern economy and are often as valuable as tangible assets.
4. Claims: Claims refer to the rights the debtor has against third parties, such as accounts receivable, rental income, and interest. Enforcing this type of property typically involves third parties, making it more complex in practice.
The scope and limitations of compulsory execution for different types of property vary by region. These differences stem from diverse judicial practices and levels of economic development. For example, in some regions, compulsory execution of intellectual property may face stricter limitations, while in others, it may be more flexible. Similarly, enforcement of movable and immovable property differs from region to region with varying regulations and requirements. Therefore, in specific enforcement practices, enforcement agencies and legal representatives must thoroughly understand and strictly comply with local regulations and procedures to ensure the legality and effectiveness of the execution.
After identifying the types of property, enforcement agencies must adopt appropriate enforcement methods based on the type of property. These methods include:
1. Seizure and Detention: For movable and immovable property, enforcement agencies can take measures such as seizure and detention to prevent the property from being lost or hidden, creating conditions for subsequent liquidation or transfer.
2. Auction and Sale: Seized or detained property can be liquidated through auction or sale, with the proceeds used to repay the debt. This process must strictly follow legal regulations and ensure that it is conducted openly, fairly, and justly.
3. Transfer of Intellectual Property: For intellectual property, enforcement agencies can implement execution through transfer or licensing. The value of intellectual property must be assessed, and suitable buyers or transferees must be identified.
4. Recovery of Claims: For claims held by the debtor, enforcement agencies can recover them through forced transfer or subrogation. This often involves complex third-party relationships, requiring the enforcement agencies to be highly professional and cautious.
When implementing these methods, enforcement agencies must consider the special nature of the property and the specific provisions of the local legal system to ensure the legality, effectiveness, and ultimate success of the execution.
To better understand the practical application of property types and enforcement methods in compulsory execution, this paper analyzes a representative debt dispute case. In this case, the debtor failed to repay on time due to poor business performance, and the creditor subsequently filed a lawsuit with the court. The court affirmed the creditor's claim and took compulsory execution measures against the debtor’s property. During the execution process, the court first froze the debtor's bank account, then seized the real estate under the debtor's name. Ultimately, the bank deposits were transferred, and the real estate was auctioned publicly, resulting in successful liquidation and debt repayment. This case demonstrates the importance of choosing appropriate enforcement methods to realize creditors' rights during actual execution.
By analyzing the types of property and enforcement methods in compulsory execution, this paper provides both theoretical and practical support for enforcement practices. In actual execution, enforcement agencies and legal representatives must thoroughly understand and accurately apply legal provisions, choosing the most suitable enforcement methods to ensure the legality, effectiveness, and success of the execution. At the same time, creditors should conduct comprehensive asset investigations before applying for compulsory execution to ensure their claims are maximally protected and satisfied. The reasonable design and effective implementation of compulsory execution procedures are not only crucial to protecting creditors' rights but also play a positive role in promoting the stability and development of a rule-of-law society.
