Property enforcement proceedings allow creditors to recover debts when a debtor does not pay voluntarily, for example a mortgage, loan or other amount due. The creditor may ask the court to attach and auction the debtor’s property. The proceeds satisfy all or part of the debt.
The procedure is governed by the Italian Code of Civil Procedure, particularly Articles 555 onwards, covering property expropriation and the stages leading to sale.
1. Enforceable title
The creditor must have an enforceable title: a document entitling them to commence compulsory enforcement. Examples include a judgment ordering payment, an enforceable payment order or a mortgage contract executed as a public deed or authenticated private instrument. Before enforcement, the creditor serves a formal demand requiring payment within the statutory period. If payment is not made, attachment can begin.
2. Attachment of the property
Under Article 555, attachment binds the property to the enforcement proceedings. The debtor can no longer freely dispose of it, for example by selling or gifting it to put it beyond creditors’ reach. The attachment is recorded in the land registers to make it enforceable against third parties and protect the creditors involved.
3. The enforcement judge and appraisal
The judge checks procedural regularity and, where necessary, appoints an expert to prepare an appraisal. This key document describes the property, condition, planning and cadastral position, occupants and market value. It provides the basis for the auction’s starting price.
4. Auction sale
Once the formalities are complete, the judge orders the sale, now usually online. Interested parties submit offers by the deadline in the sale notice. Multiple valid offers may lead to competitive bidding. The property is awarded to the best bidder, who must pay within the judge’s deadline or risk losing the deposit and the award.
5. Transfer decree
After payment, the enforcement judge issues the transfer decree, officially transferring ownership to the successful bidder and ordering cancellation of mortgages and attachments where the law provides. Proceeds are then distributed to creditors in statutory priority order, taking account of lawful preferential rights.
This structured process protects both the creditor’s right to payment and the debtor’s procedural safeguards. Judicial supervision, appraisal, publicity and competitive sale aim to ensure a transparent, impartial and lawful process respecting everyone involved.