Undisputed compulsory enforcement of liabilities in the case of a cash loan

In practice, it is possible to avoid the litigation procedure on debt collection, if the loan contract is concluded as a notarial deed. The lender can submit the loan contract executed as a notarial deed with a Sworn Notary to the Sworn Notary for compulsory enforcement within one year from the date of loan repayment provided in the loan contract. Namely, the Sworn Notary, based on the lender’s application, prepares a notarial execution deed that can be submitted to the Sworn Bailiff to start compulsory enforcement against the debtor. Debt collection does not require a court ruling. If the loan contract (as a notarial deed) is not submitted for compulsory enforcement to the Sworn Notary within the above term of one year, the lender shall request debt collection in court in line with the general civil procedure.

In order to ensure efficient debt collection from the debtor and avoid time-consuming litigation, the loan contract shall be concluded in the form of a notarial deed (i.e., they should be signed with the Sworn Notary). Due to the need to prepare a notarial deed and the involvement of the notary, additional expenses are incurred upon signing the loan contract. However, the expenses are smaller than those in the case of time-consuming litigation. Expenses for signing a loan contract in the form of a notarial deed are as follows: a) preparation of a notarial deed for a transaction is 0.5% of the transactional amount, but not less than EUR 80; b) preparation of a notarial execution deed is 50% of the notarial fee referred to in Clause A, and the calculation is based on the amount to be collected.