BANKRUPTCY REGULATION

REAL ESTATE EXECUTIONS
It is the procedure regulated by the book III, title II, head IV of the code of civil procedure, recently changed by the reform about the process of execution of the D.L. 35/2005 (c.d. order about the competitiveness) changed into the Law 80/200, that has come into effect from the 1st January 2006 because of other interventions. It is promoted by the creditor, with executive title, with the notification of the writ and the registration of the foreclosure by 90 days. The Judge is the Court of the place where is the distress immovable property; the creditor with executive title, after minimum 10 days following the foreclosure, can ask with recourse the sale, attaching by the term of 120 days (New text Art. 567 2° co. C.p.c) by the deposit of it (term extendable only one time for right reasons), the cadastral documentation, the certificate of city planning allocation and of the public real estate books or notarial alternative certification. By 30 days from the deposit, the Judge appoints an expert that will have to survey the distress goods, to fix the hearing for the following 90 days, and after it, if there are no oppositions or if the debtor and the creditor come to an agreement, the Judge orders the sale without auction (new text art. 569 3° co. C.p.c.) fixing the term, of minimum 90 days and maximum 120, to deposit the bids as written in the Code (new text art. 571 co. 2° and 3° C.p.c). With the same ruling the Judge decides a new hearing for the day after the deadline of this term, when he will examine the bids and will indicate the other possible auction in the case that the sale without auction does not starts because of lack or inadequacy of the bids, or for othe reasons. The Judge decide the procedures of the auction (day, hour, place, starting price, terms for the payment of the price, etc) and the amount of the deposit to participate, that cannot be more than 1/10 of the starting price (new text art. 576 C.p.c.). The auction is published on the books of the judicial office where there is the executive procedure, and on the most popular local or national newspapers. The notice, the ruling, and the survey must be put also on the internet (new text art. 490 2° and 3° co. C.p.c.). In the ruling of sale there are the procedures that the guard must follow in order to let the participants examine the good that is in auction (new text art. 560 6° co. C.p.c.). The operations of sale can be delegated by the Judge to a notary, generally with offices near the judicial office, or to a lawyer, public accountant or expert accountant, that are registered in the roll.

SALE WITHOUT AUCTION
It is a preliminary kind of sale that must be done before the auction. Everybody can participate, both legal and natural people, excepted the debtor. The bids must be presented at the Chancellery of the judicial office, with the indication of all the relevant elements. The bid, that is irrevocable, is not valid if it arrived after the term indicated by the Judge in the ruling of sale, that must be minimum 90 days and maximum 120 days. The bid must be deposited in a closed envelope with the banker’s cheque as deposit. During the hearing, fixed in the ruling of sale for the day after the deadline of the term to present the bids, they value them. If there is only one bid that is superior to the survey value of at least 1/5, it is accepted; otherwise, if there is opposition of the creditor, or if the Judge thinks that the good can be sold in a better way in the auction, they go on with the auction (new text art. 572 2° and 3° co. C.p.c.). If there is more than one bid, the Judge starts the auction, and if the bidders don’t accept, he knocks down to the best bidder or orders the auction.

REAL ESTATE AUCTION
The auction starts only if the sale without auction, that is a necessary and preliminary phase, had negative result (new text art. 569 3° co. C.p.c.). Everybody can participate, both legal and natural people, excepted the debtor, presenting a petition with two stamps (of € 14,62 and € 1,81) and with the deposit of the amount established by the Judge in the ruling of sale, by the term and with the procedure indicated on it. If the bidder does not buy the immovable property, he can immediately take back the deposit, excepting in the case that he did not have his document. In this case he will receive only 9/10 of the deposit (new text art. 580 2° co. C.p.c.). By 10 days after the provisional knocking down it is possible to bid at least 1/5 of the price reached in the auction (new text art. 584 C.p.c.). The bids must be presented as for the sale without auction, depositing an amount that is the double of the amount of the other sale. Once that they see that the bids are valid, they start a new auction, that is communicated to the buyer, and advertised as in the other sale, and they fix the term to present the bids. To the auction can participate, in addition to the bidders of the rise of the fifth and the buyer, also the bidders of the other sale that deposited the right amount of money by the term established. If nobody goes to the auction, the knocking down becomes final and the Judge orders the loose of the deposit of the bidders. Where there isn’t the auction because of lack of bidders, and if there are not requests of knocking down of the creditors, a new auction can be fixed, sometimes with different procedures of execution and with a starting price of 1/5 less. The final buyer must pay the rest of the price, also with loan, by the term indicated by the Judge in ruling of sale (maximum 60 days). After the payment of the price, the Judge can suspend the sale if he thinks that the price is less than the right one, otherwise he declares the order of transfer, ordering also the write-off of the registrations on the goods. If the price obtained at the end this new auction, together with the deposit taken from the former buyer, is less than the price of the preceding sale, the former buyer must pay the difference.

ORDER OF TRANSFER
It is the provision of the Judge through which the buyer buys the right of ownership on the immovable property. It is the equivalent of the act of sale written by a notary. With it they order the write-off of the registrations of the foreclosure that made the executive procedure start. The order is an executive title that make possible that people living in the immovable property leave it.