LUXEMBOURG Law and Practice Contributed by: Elisabeth Omes, Stephen De Ron and Lorenzo Cappelli, Elvinger Hoss Prussen
Recovery of specific property Where a judgment orders the return of specific mov - able property, Luxembourg law provides procedures allowing the creditor to recover possession from the debtor or a third party holding the property. Eviction and removal orders Judgments ordering the vacation of premises may be enforced through eviction proceedings. The bailiff may take the necessary measures to remove occupants and restore possession of the property to the suc - cessful party. Enforcement of Obligations to Act or Refrain from Acting Where a judgment requires a party to perform or cease a specific act, Luxembourg courts may support enforcement through the imposition of a financial pen - alty payment ( astreinte ) that accrues until the debtor In addition to enforcement measures, Luxembourg law provides for several mechanisms designed to preserve assets pending final enforcement. Judicial security interests Creditors may obtain security over certain assets, including: • mortgages over real property; • pledges over business assets; and • pledges over shares, securities or financial instru - ments. These measures do not themselves result in payment, but secure the creditor’s position and may grant prior - ity upon subsequent realisation of the asset. complies with the judgment or order. Protective and Conservatory Measures To enforce the security, an enforcement proceeding must be initiated separately at the creditor’s initiative. Conservatory attachments (saisies conservatoires) Conservatory attachments are provisional measures intended to restrict access to the assets or funds belonging to the debtor until an enforceable judgment is obtained.
The attachment freezes the debtor’s account in full, and may ultimately result in payment to the creditor following validation of the attachment. If the attachment is successful, the debtor may never - theless seize the court to request that it withdraw its attachment, by way of a référé - rétractation , or limit the attachment up to the amount claimed by the creditor, if the amount attached is higher, by way of a request for cantonnement . Attachments of incomes Creditors may seek attachment of recurring income owed to the debtor, including: • wages and salaries; • certain pensions; • unemployed benefits; and • other attachable income streams. Specific statutory protections and attachment thresh - olds apply. Seizure and sale of movable property The bailiff may seize movable assets belonging to the debtor, including: • movable property; • vehicles; • receivables; • shares in certain types of companies (eg, public limited liability companies, or sociétés anonymes ); and • economic rights attached to shares in certain types of companies (eg, private limited liability compa - nies, or sociétés à responsabilité limitée ). Depending on their nature, the attached assets, may subsequently be sold by public auction, with the pro - ceeds distributed among the creditors in accordance with the applicable rules of priority. • securities and shareholders’ rights; • assets held in safe deposit boxes; Seizure of immovable property (saisie immobilière) Real estate seizure is a formal judicial procedure cul - minating in the sale of the property under court super - vision.
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