Enforcement action - Foreclosures

Debt auditing

Every month the NII executes debt auditing on all insured persons and employers.

According to the law, we may decide to which insured persons/employers notices of debt, reminders and demands for payment will be sent.

After sending the notices and reminders in the mail and subsequently making a number of telephone calls, the NII is authorised in the ordinance to take legal steps to collect the debt.

Foreclosure order

The NII sends a foreclosure order to a third party who may possess assets and money belonging to the insured person/employer, and compel the third party to transfer the money for the insurance debt.

The NII sends foreclosure orders to many bodies for insured persons/employers insurance debts, with copies to those insured persons/employers who owe the money.

The collections official and worker responsible for collection may send a foreclosure notice without going through the courts.

Bodies to which foreclosure notices are sent include: banks/provident funds/insurance and credit companies/government offices and various employers and suppliers where there is reasonable grounds that the insured persons/employers work with or for them (salary foreclosure).

The NII may also foreclose and sell motor vehicles/engineering equipment as well as real estate assets (apartments/ plots of land, fields, etc.).

For your information!
A foreclosure order is a court order by law and is valid for 90 days from the day it was issued.
The NII is not obliged to go to court to send a foreclosure order.

Response to foreclosure order

Receipt of a foreclosure order obligates the third party receiving it to respond to the NII at once if he/she possesses assets or money of the insured person/employer who owes it.

If there is money, or the third party receives it, the latter has 90 days by law from the date on which the order was sent to transfer it.

Cancelling foreclosure

The NII sends an order cancelling the foreclosure in the following cases:

If the insured person/employer settles the insurance debt and/or the third party transfers what is owed in full and/or the debt is repaid and cancelled.

In such a case an order cancelling the foreclosure is sent to all the bodies with a copy to the insured person/employer.

Charging the third party

If the third party does not respond to the foreclosure order, the NII may compel it to pay the debt appearing on the order.