Enforcement Against the Debtor’s Property

Enforcement against the debtor’s property is a key institution of enforcement proceedings that ensures the execution of final court judgments and other enforceable documents. In the Republic of Uzbekistan, this process is regulated by the Law “On the Procedure for Execution of Court Acts and Acts of Other Bodies” dated August 29, 2001, No. 258-II, as well as a number of subordinate regulations.

The institution of enforcement performs not only a compensatory function (satisfaction of the creditor’s claims) but also a preventive function — encouraging debtors to voluntarily fulfill their obligations.

Legal Grounds for Enforcement

Enforcement against the debtor’s property is carried out within enforcement proceedings on the basis of enforceable documents such as:

• Decisions and rulings of courts of general jurisdiction, commercial and administrative courts;
• Judgments and rulings in criminal cases concerning property-related penalties;
• Notarial deeds and enforcement inscriptions by notaries;
• Decisions of arbitration tribunals and international arbitral awards recognized in Uzbekistan;
• Acts of administrative authorities in cases explicitly provided by law.

Participants and Their Powers

A key role in enforcement is played by the Bureau of Compulsory Enforcement (BCE) under the Prosecutor General’s Office of the Republic of Uzbekistan.

The state enforcement officer:

• Initiates enforcement proceedings;
• Issues rulings to seize the debtor’s property;
• Conducts searches for property, with the assistance of police, tax authorities, banks, and cadastral offices.

The creditor has the right to request enforcement against specific property, while the debtor is obliged to provide information about their assets.

Subject and Scope of Enforcement

Enforcement may be directed against the following types of property:

• Monetary funds in bank accounts and deposits;
• Movable property (vehicles, securities, goods, equipment, etc.);
• Immovable property (residential houses, apartments, land plots, production facilities);
• Property rights (shares in charter capital, receivables, etc.).

However, the law also defines categories of property exempt from enforcement, such as essential household items, personal belongings, food for a certain period, and professional tools.

Procedure for Enforcement

The process consists of several consecutive stages:

1. Initiation of Enforcement Proceedings — Based on the enforcement document, the state officer issues a resolution and provides the debtor with a voluntary compliance period (usually 15 days).
2. Seizure of Property — If the debtor fails to comply within this period, the property is seized, with an inventory and seizure report prepared.
3. Valuation of Property — Carried out either by the enforcement officer or by an independent appraiser.
4. Sale of Property — Conducted via auctions, electronic trading platforms, or direct sales, depending on the nature of the property.
5. Distribution of Proceeds — Execution expenses are covered first, followed by satisfaction of the creditor’s claims. If there are multiple creditors, the funds are distributed proportionally.

Special Rules of Enforcement

The law establishes specific rules for certain types of claims:

• Alimony and wages have priority and are enforced first.
• Mortgaged or pledged property is subject to enforcement with due regard to the pledgee’s rights.
• Real estate is sold only after cadastral procedures and state registration of ownership transfer.
• State-owned property is subject to a special procedure coordinated with the Ministry of Finance and the Treasury authorities.

International Aspect

The enforcement of foreign court judgments and arbitral awards is allowed based on international treaties and the principle of reciprocity. In such cases, enforcement against the debtor’s property in Uzbekistan is carried out only after recognition and authorization for enforcement of the foreign act by a national court.

Modern enforcement practice in Uzbekistan faces several challenges:

• Lack of transparency in valuation and sale procedures;
• Abuse by debtors (fictitious transfers, concealment of assets);
• Limited mechanisms for enforcing property rights, especially business shares;
• Lengthy and complex international enforcement procedures.

Promising directions for improvement include the development of electronic auction systems, expansion of databases on debtors and their assets, and strengthening of coordination between the BCE, banks, cadastral, and tax authorities.

Classification of Debtor’s Property in Enforcement

Property Category	Examples	Subject to Enforcement	Exempt from Enforcement (Exceptions)	Special Features of Enforcement
Monetary Funds	Bank accounts, deposits, cash	Yes	Amounts designated for social payments (benefits, compensations, etc.)	Enforcement through banks and treasury
Movable Property	Vehicles, equipment, goods, securities	Yes	Essential items, food for one month, tools for work	Vehicles may be seized with police participation; securities — via depository
Real Estate	Apartments, houses, land plots, industrial buildings	Yes	Sole residence (if not mortgaged), household land within statutory limits	Sale only via auction and with state registration of ownership transfer
Debtor’s Income	Salary, pension, scholarship, alimony	Yes (within statutory withholding limits)	Minimum income necessary for debtor and dependents	Alimony and salary have enforcement priority
Property Rights	Shares in companies, receivables	Yes	Personal rights inseparable from the debtor’s identity	Requires special valuation and registration of transfer
Pledged Property	Pledged vehicles, real estate, equipment	Yes	—	Pledgee has priority in satisfaction
State Property	Budget funds, property of state bodies	Partially (special procedure)	Property used for state functions	Enforcement through the treasury under coordinated procedure
Internationally Related Property	Assets of foreign companies, diplomats	Yes (as provided by treaties)	Diplomatic property and property with immunity	Enforced only after court recognition in Uzbekistan