Third-party attachment
Third-party attachment is a commonly used instrument to secure or collect claims by attaching assets held by a third party for the debtor. It can have significant consequences for all parties involved and requires a careful legal approach.
What is third-party attachment?
Third-party attachment is a form of attachment in which the attachment is not imposed directly on the debtor, but on a third party. This third party—such as a bank, employer or contracting party—holds assets or claims that belong to the debtor. As a result of the attachment, the third party is no longer permitted to make payments or deliveries to the debtor.
Common forms of third-party attachment include attachment of bank accounts, attachment of wages, and attachment under contracting parties.
Pre-judgment and executory third-party attachment
Third-party attachment may be imposed either as pre-judgment attachment or as executory attachment. Pre-judgment third-party attachment is used to obtain security prior to a court ruling. Executory third-party attachment is imposed on the basis of an enforcement title, with the aim of compelling actual payment.
In both cases, strict statutory rules apply to the manner in which the attachment is imposed and to the disclosure obligations of the third party.
Obligations of the third party
The third-party garnishee is required to submit a statement setting out what it holds or owes to the debtor. Incorrect or incomplete statements may give rise to liability. It is therefore essential for third parties to act carefully and promptly upon receipt of an attachment.
Defence against third-party attachment
Both the debtor and the third party may challenge a third-party attachment. Grounds for defence may include, among others:
the absence of a valid claim;
improper or unlawful attachment;
attachment of non-attachable claims;
disproportionality of the attachment.
Where appropriate, the court may be requested to lift or limit the attachment.
Legal assistance in third-party attachment
Clavix Advocaten advises attaching parties, debtors and third-party garnishees on their legal position and obligations. We guide clients throughout the entire process, from the imposition of attachment to proceedings concerning statements, lifting of attachment and liability.
Legal advice needed?
Have you been confronted with third-party attachment, or are you considering imposing attachment on a third party? Contact Clavix Advocaten for a clear assessment and expert guidance.