Repossession laws in Rome are laws that regulate repossessions of the goods of debtors, such as those who have been sued for non-payment of debt. There are two types of repossessions: judicial and extra-judicial. The former is pursued through the justice system, while the latter is carried out without court intervention. When carrying out a judicial repossession, authorities of the creditor must first obtain a writ of possession from the court, which allows them to take back goods that were originally transferred to security in line with a contract or mortgage. Extra-judicial repossessions are carried out when creditors fear that there will be some risk in transferring their rights over to a third party called an agent, which can prevent them from carrying out their legal obligation under civil law.
Benefits of Repossession laws in Rome
- No court intervention
If a debt is unpaid and the debtor does not have the ability to pay, creditors can pursue repossession via judicial processes to allow them to take back the property. Under this process, they must first obtain a writ of execution from a court which allows them to take back their property, which can be done with help of an experienced bailiff.
- Repossessions are cheaper than judicial repossessions
The benefit of judicial repossessions is that they are more expensive because they involve courts and sittings of judges. However, it is possible for agents to seize property themselves if they want and also there is no need for court approval.
- Judicial repossessions are more expensive
Extra-judicial repossessions are cheaper than judicial repossessions because they avoid court intervention, which can be costly and time-consuming. Extra-judicial repossessions are not as complicated, but they do involve the enforcement of a writ of possession by bailiffs to take back the property. Another benefit is that creditors can actually recover their possessions before the judgment is passed by a court in cases where the debtor agrees to pay his/her debt before the judgment is finally made.
- Judicial repossession is risk free
If a creditor decides to pursue repossession through the courts, once a judgment is given, the creditor will be able to recover the property without further risk. In a situation of extra-judicial repossessions, if the debtor is seeking justice and has an attorney that can ensure his/her debt is paid by the time of court hearing, then they will avoid paying huge costs while protecting their possession.
- Extra-judicial repossessions are unsafe
There are risks involved in most extra-judicial repossessions because they may not be as time efficient as judicial repossessions. This can result in evidence being destroyed along with other parts of a lawsuit that could affect its results significantly.
Issues of Repossession laws in Rome
- Inadequate law enforcement
As shown above, extra-judicial repossessions are not as difficult as judicial repossessions. However, there is a lack of adequate laws on how such acts should be carried out. Most repossession agents know about the law, but do not fully understand it and there are also those who take advantage of their clients’ ignorance and make illegitimate use of the system.
- Prohibiting extra-judicial repossessions
The laws regulating extra-judicial repossessions are outdated and don’t comply with modern practices. Most extra-judicial repossessions are not done within the framework of the law; they are more rampant in some countries and states than others. In most cases, extra-judicial repossessions are prohibited.
- The roles of creditors, bailiffs and debtors
There is a lack of clear distinction between the roles of creditors who file for repossession, bailiffs who carry out these repossessions on behalf of creditors and debtors who fail to pay their obligations and seek legal remedies in order to protect their rights. For example, a creditor may be required to hire a licensed bailiff firm, who will then hire other experts such as TVLs and solicitors, which can be costly to both parties involved.