A distribution is the enforcement officer\u2019s decision identifying the claims to be paid, their order of priority and the amount allocated towards full or partial payment of each. It is needed where several creditors participate in the same enforcement proceedings and the money realised is insufficient to pay them all in full.<\/p>\n
In its discussion of Article 458 of the Code of Civil Procedure, the original article describes the State and the municipality as joined creditors for public and other claims against the debtor whose amounts have been notified to the enforcement officer by the time of distribution. For this purpose the officer notifies the National Revenue Agency of each enforcement proceeding opened and each distribution. The State\u2019s claims for taxes on a particular property and its other claims, except fines, enjoy preferential payment under Article 136(1), points 2 and 6, of the Obligations and Contracts Act. The rules discussed thus give State claims advantages both in the procedure for recovery and in the order of payment. Where such claims exist the State is deemed joined by operation of law. The enforcement officer ascertains their existence on the officer\u2019s own initiative by requesting information from the National Revenue Agency.<\/p>\n
Under point 6 of Supreme Court of Cassation Interpretative Decision No. 2\/2015, not every expense incurred by the original creditor in enforcement proceedings has priority under Article 136(1), point 1. The first rank of special privileges covers that creditor\u2019s costs of the particular enforcement measure that produced the proceeds being distributed. The cost of opening the enforcement case and the fee for one lawyer may also be included at this rank.<\/p>\n
Article 136(1), point 1, gives priority to claims for the costs of securing and enforcing a claim, and of actions under Articles 134 and 135, out of the value of the property to which the costs relate, as against creditors who benefited from them. This sets the criterion for priority in recovering costs: preference goes to the creditor who paid for steps from which other creditors also benefited.<\/p>\n
This article is not a legal opinion or advice on any particular situation or person. For legal assistance in a similar case, consult a civil lawyer specialising in enforcement proceedings.<\/em>
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