Prejudgment attachment: Immediate security for your outstanding claim

Prejudgment attachment is a legal means by which you temporarily secure your debtor's assets. There is no judgment yet, but you already take a position on the money or goods of your counterparty.

This is important because normal legal proceedings can take months. During that time, a debtor can siphon off money, sell goods or transfer assets to another limited liability company. With prejudgment attachment, you prevent your claim from being true in theory, but uncollectible in practice.

Preservation orders are therefore primarily used in:

• Major or strategically important advances
• Debtors who you fear are making wealth go away
• Situations where speed and surprise are essential

Conservatory attachment and foreclosure are often mixed up, but come into play at different points in the process.

• Prejudgment attachment: is used before there is a judgement. As it were, you reserve your debtor's assets. He may no longer sell, encumber or move them, but you may not yet have them auctioned off.
• Executory seizure: comes after the judgment. The judge has awarded your claim and the bailiff may now actually proceed to collect, such as by paying out bank balances or selling goods.

In practice, you often see that first a prejudgment attachment is levied and then, after a successful summons and judgment, this is converted into an executory attachment. In this way you build up security step by step towards actual payment.

In the Netherlands, you can have a prejudgment attachment levied on many different assets. Together we look at where your debtor has the most value.

• Bank Seizure (garnishment)
  The bailiff seizes your debtor's bank. The balance at that time is frozen. Note that only the amount in the account at the time of attachment is covered. Income coming in after that is not covered. So timing is crucial. Want to know more about this? Then also read our explanation on bank attachment.
• Immovable property (real estate)
  For example, an office building, business premises or home of a liable director. The attachment is registered in the Land Registry. In practice, a property with attachment is unsaleable and cannot simply be re-mortgaged.
• Movable property (machinery, stock, vehicles)
  The bailiff describes the property in a report. The debtor may no longer freely dispose of them. This remedy is often used with manufacturing companies or companies with valuable inventory.
• Receivables from third parties
  Does your debtor have customers of his own who have yet to pay him? Then we can seize those payment flows. The customers then temporarily do not pay your debtor, but keep the amount reserved until the court has decided.

Preservation orders are customized and must be legally and procedurally perfect. This is what the process looks like in broad terms.

1. Intake and legal scan
   We assess your claim, the underlying documents and the risk of asset dissipation. We also consider whether conservatory attachment is the right step in addition to or instead of a regular collection process.
2. Prepare garnishment petition
   An affiliated attorney will prepare a petition for the preliminary injunction court. In it, we substantiate your claim and explain why there is a fear of embezzlement or asset diversion.
3. Leave of court
   The judge often reviews the petition within a short time. If the leave is granted, the bailiff may actually start seizing.
4. Service and execution of the attachment
   The bailiff places the attachment at the bank, the Land Registry or at the debtor's premises. This is usually done unexpectedly, so the debtor does not have time to make assets go away.
5. File a claim in the main action
   After the attachment, you must start the main action within a short period of time (usually 14 days), often through a subpoena. If you fail to do so or lose the case, the attachment may expire and you may be liable for damages.

Credifin coordinates this entire process for you. You have a single point of contact who coordinates the steps with you and clearly informs you about opportunities, risks and next steps.

Prejudgment attachment is a powerful but also drastic remedy. It is important to know in advance where you stand financially and legally.

• Costs
  You pay court fees, attorney fees for the writ and bailiff fees for the writs and garnishment, among other things. In many cases, you can recover these costs from your debtor if you win your case. Want to know more about court costs? Then also read our page on court fees.
• Risk of liability for damages
  Attachment should not be a means of pressure without a serious claim. If it later turns out that your claim was unfounded, you may become liable for the damages the garnishment caused to the debtor. This is why we always do a thorough legal pre-scan first.
• Combination with a collection process
  Sometimes attachment is not necessary and a solid amicable collection process is sufficient. In other cases seizure is the only way to secure recourse. We think along with you in an honest way.

Our starting point is always the same: we only deploy resources that are appropriate to the amount of your claim, the risks and the relationship with your client.

Preservation orders require tight direction and flawless execution. One procedural lapse can result in the attachment being lifted or even a claim for damages.

At Credifin, you benefit from:

• Combination of debt collection and litigation practice
  We know both the practice of day-to-day debt collection and the world of judgments, attachments and foreclosures.
• Network of specialized lawyers and bailiffs
  We work with partners who do attachment cases every day and know exactly what is required in court and with the bailiff.
• Data-driven choices
  We analyze where your debtor has the most recourse: bank, real estate, machinery or outstanding third-party receivables.
• Clear communication
  You don't get a legal maze, but a clear roadmap in plain language. You stay in control, we do the work.

Do you doubt whether prejudgment attachment is the right step in your situation? If so, we will think honestly with you, including alternatives such as a final notice, a strong final demand or full court proceedings.