What can be garnished or distrained

Distraint and garnishment are intended to secure the repayment of a debt in enforcement: the income of the debtor is garnished and their assets distrained to an amount covering the debt in enforcement. As a rule, all types of assets and income are subject to distraint or garnishment. Ordinary household effects will not be distrained. If the creditor has only applied for limited enforcement, distraint measures will not be directed at assets that would have to be liquidated (e.g. real estate or vehicles).

The most common scenario is garnishment of the debtor’s pay, pension or business income. See Garnishment of pay and Garnishment of business income for more information.

Movable assets that can be distrained include:

vehicles,
securities,
shares in a housing company,
tax refunds,
bank deposits, and
cash.

Real property, i.e. real estate and plots, can also be distrained.

As a rule of thumb, movable assets are distrained before real property. The debtor’s permanent residence and assets that the debtor needs for their business are distrained last. The order of distraint can be derogated from subject to certain conditions. In certain cases, the debtor has the right to influence the order of distraint by indicating certain assets as distrainable.

Distrained assets are realised by way of an auction. If the debt is repaid, the distraint lapses and the assets are returned to the debtor.

Distraint of jointly owned assets

In many cases, the debtor owns assets such as real estate jointly with another person. Such jointly owned assets can under certain conditions be distrained in full. The joint owner is reserved an opportunity to redeem the debtor’s share of the asset before a jointly owned asset is sold. If the joint owner decides not to exercise their right of redemption, the jointly owned asset may be sold through enforcement proceedings. In this case, an amount of the selling price corresponding to joint owner’s share will be remitted to them.