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Enforcement and Bankruptcy LawWhat is a Negative Determination Lawsuit?

A negative determination lawsuit is a type of lawsuit filed to determine that a right or legal relationship does not exist. It is a request for a determination that there is no debt related to an execution proceeding that has been opened or is likely to be opened in the future. In order to file a negative declaration case, there must be legal benefit. The court in charge of negative determination cases is the Civil Court of First Instance.

Negative Determination Case Filed Before Execution Proceedings

The person who has been notified of a debt to pay but has not yet initiated enforcement proceedings must meet the legal benefit and conditions of the negative determination lawsuit filed before the enforcement proceedings. For example; If there is an uncertain legal situation or if a notice regarding the debt is drawn to the person, the person is considered to have legal interest. However, this negative declaration case does not prevent the enforcement proceedings from being stopped. However, after the execution proceedings are opened, an interim injunction may be requested from the court by depositing a collateral of not less than 15% of the receivable. If the judge grants an interim injunction, the enforcement proceedings shall be suspended.

Negative Determination Lawsuit Filed After Execution Proceedings

After the execution proceeding is opened, the person who is the debtor in the proceeding may file a negative declaration lawsuit to determine that he/she is not indebted. The negative declaration lawsuit filed after the enforcement proceedings does not stop the proceedings. However, a deposit of not less than 15% of the receivable may be deposited and a preliminary injunction may be requested from the judge. The interim injunction decision issued here does not prevent the seizure, sale or the progress of the proceedings, it only prevents the payment of the money in the cashier’s office of the enforcement office to the creditor.

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