Factsheet for measure
LV-2020-14/647
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Updated
– measures in Latvia
Measures intended to give the debtor additional time to fulfill obligations
Pasākumi, kuru mērķis dot parādniekam papildu laiku saistību izpildei
Background information
The Ministry of Justice has prepared and the Parliament has approved measures intended to give to the debtors additional time to fulfill obligations which he/she is unable to pay through his own fault due to the spreading of COVID-19.
Measures are established by the law “On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19” (adopted on 20 March 2020, valid from 22 March 2020).
Content of measure
The 30-day term specified in Commercial Pledge Law for issuing a decision on the use of a commercial pledge has been extended to 60 days. Pledgor and pledgees may contest the notice about the collection of the commercial pledge to a Court also in case when exceptional circumstances preclude the use of the commercial pledge.
With reference to hearing civil cases and deciding on the term for voluntary enforcement of the judgment in accordance with Section 204.1 of the Civil Procedure Law, the term the Court may specify has been extended from not exceeding 10 days to 60 days, except for the cases when the judgment is to be enforced without delay.
An application for undisputed enforcement of obligations in accordance with the procedures laid down in the Civil Procedure Law may be submitted only if evidence regarding issuance of a warning to a debtor has been issued not earlier than 60 days prior to submission of the application.
The term specified in the Extrajudicial Debt Recovery Law for expressing the debtor's objections against the existence, amount and payment term of the debt has been extended from 21 days to 60 days from the date of receipt of the notice of the existence of debt.
The new term – not less than 60 days from the day when the term for execution of the liability became due – is introduced for a creditor to submit a notarial deed to a sworn notary.
In the period from 1 April 2020 to 1 September 2020, the interest rate for delay in the performance of a civil law obligation may not exceed the amount specified in the Civil Law. The aim of this norm is to reduce the impact of additional negative consequences on legal entities that are already unable or will not be able to ensure timely fulfillment of civil obligations due to the state of emergency declared in the country.
In the period from 12 March 2020 to 1 July 2020, the limitation period for statutory obligations is suspended and this period is deductible from the calculation of the limitation period.
Updates
The following updates to this measure have been made after it came into effect.
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28 September 2021
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The current law contains following norms which are in force until 1 September 2021:
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the holder of the Commercial Pledge Register shall, within 60 days, take the decision on exercising the commercial pledge;
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upon hearing civil cases and deciding on the term for voluntary enforcement of a judgment in accordance with Section 204.1 of the Civil Procedure Law, the court may specify it as not exceeding 60 days, except for the cases when the judgment is to be enforced without delay;
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An application for the undisputed compulsory enforcement of liabilities or voluntary sale of immovable property by auction through the court in accordance with the procedures laid down in the Civil Procedure Law may only be submitted if a warning has been issued to a debtor at least 60 days prior to the submission of the application;
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Upon commencing the recovery of a debt, the creditor or the provider of debt recovery service within the meaning of the Law on Extrajudicial Recovery of Debt shall notify the debtor in writing of the existence of a debt and invite him or her to fulfil the late payment liabilities voluntarily, indicating information in the notice regarding the possibility of expressing reasoned written objections regarding the existence, amount, and deadline for payment of the debt and setting a deadline for expressing objections which shall not be less than 60 days from the day of receipt of the notice;
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A creditor may submit a notarial deed to a sworn notary for assignment for compulsory enforcement within one year but not earlier than 60 days from the day when the term for the execution of the relevant liability became due.
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10 June 2019
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On 10 June 2020 the new umbrella law “On the Suppression of Consequences of the Spread of COVID-19 Infection” was adopted and took over functions of the initial law “On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19”.
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Use of measure
No information up to date.
Target groups
Actors and funding
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Actors
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Funding
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National government
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No special funding required
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Unknown
Involvement
No specific involvement.
Views and reactions
No involvement.
Sources
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08 April 2020: Būtiskākās tiesiskā regulējuma izmaiņas civiltiesību jomā sakarā ar Covid-19 izplatību
(tm.gov.lv)
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09 April 2020: Law On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19
(likumi.lv)
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28 September 2021: Law on the Suppression of Consequences of the Spread of COVID-19 Infection (edition 28 September 2021)
(likumi.lv)
