Guide to Doing Business
Judicial sale: requesting an auction
The creditor will have to file a request with the local Court in order to establish a date and time for judicial sale, through public auction of the vessel. In its request the creditor has to illustrate (and provide evidence) that it is entitled to foreclose upon the vessel.
Subsequently, the enforcing creditor will have to deposit with the Court:
- the Conditions for Sale;
- a declaration from a bailiff or creditor’s attorney that the advertisements of sale and notifications of other creditors and claimants have taken place; and
- a list of parties which are known to the enforcing creditor and who qualify as a title holder and/or judgment creditor in respect of the vessel. There is no obligation to inform other known creditors of the sale unless they fall within one of the above categories.
When filing its request, the enforcing creditor will have to take into account a period of 30 days between the date on which the abovementioned documents are deposited with the Court and the date of the auction. However, this period can be shortened, under special circumstances, which may be subject to certain conditions imposed by the Court.
Following (the submission of) this request, the Court will normally ask for a court hearing to discuss the main features of the auction. Following this hearing, the Court will render a judgment in which it establishes a time and date for the auction as well as the terms and conditions for organizing the auction (e.g. date on or before which the advertisements will have to be placed, date on or before which the auction conditions will have to be submitted, date on which the list of known title holders and judgment creditors will have to be submitted etc.).