What is the first thing they attach for a debt?

Question

José Manuel Alburquerque · Accepted Answer

Normally, the money in bank accounts. Unless the creditor and the debtor agree otherwise, the law requires the assets that are easiest to sell and least harmful to the debtor to be attached first and, if that is not possible, it sets an order headed by money and accounts. In practice, the process starts with bank balances, pending refunds from the tax authorities and the attachable part of the salary or pension, while vehicles and properties usually come later. But before anything is attached, the creditor needs a judgment or another enforceable instrument that allows them to apply for enforcement. First, an enforceable instrument is needed Owing money is not enough for an attachment to be made against you. The creditor needs an enforceable instrument, which is the document that allows them to ask the court for enforcement, that is, for the debtor to be compelled to pay. Examples are a judgment ordering payment, the decree ending an order for payment procedure (“proceso monitorio”) in which the debtor neither paid nor objected, or a loan deed signed before a notary. Before judgment, the only option is a precautionary attachment (“embargo preventivo”), an interim measure that the judge can order if the creditor shows that there is a risk of not being paid and provides a guarantee. The order laid down by law The “Ley de Enjuiciamiento Civil”, Spain's Civil Procedure Act, lets the creditor and the debtor agree on what is attached. If they do not, the court clerk (“letrado de la Administración de Justicia”), who is the official in charge of enforcement at the court, chooses the assets that are easiest to sell and least harmful to the debtor. Only if that proves impossible or very difficult does the clerk follow this order: Money and current accounts of any kind. Listed securities, as well as claims and rights payable immediately or in the short term, such as a refund from the tax authorities. Jewellery and works of art. Cash income, whatever its source. Interest, income and yields of any kind. Shares or quotas (“participaciones”) in unlisted companies and other movable assets, such as a car. Properties. Salaries, wages, pensions and the earnings of the self-employed. Claims, rights and securities payable in the medium or long term. Although salary appears after properties, in practice it is attached much earlier, because that is simpler and less burdensome than auctioning a house. How assets are traced If the creditor does not know of enough assets, the court requires the debtor to declare theirs, warning them that they may be penalised if they fail to do so or if the declaration is false or incomplete. It can also impose periodic fines on the debtor until they comply. In addition, at the creditor's request, the court electronically checks the information held by the tax authorities, the “Seguridad Social” (the Spanish social security system), “Tráfico” (the Spanish traffic authority) or the “Catastro” (Spain's land cadastre) and can request information from banks and registries. Nor does the law allow the attachment of assets whose value exceeds the amount claimed, unless the debtor only has assets of greater value. That is why a house is not attached for a small debt if there are other assets from which payment can be obtained.