Have you been foreclosed on even though you had no debt? A blocked account, garnished wages or seized property due to someone else’s mistake can be a huge blow to your life. If it turns out to be a wrongful execution, you are entitled to compensation for damages and non-pecuniary loss under the law.
An unauthorised execution occurs when enforcement proceedings are brought against you without a valid legal basis. Typically, this happens if the enforcement order (e.g. a judgment) was later revoked or changed, the beneficiary(creditor) filed the petition wrongfully, the bailiff misidentified the obligor, or the enforcement was conducted after the enforcement was stopped or after the death of the obligor.
An unauthorised execution constitutes an unlawful interference with a person’s rights and property. Even if it is eventually reversed, the damage can already be considerable – blocked accounts, damaged reputation, psychological distress or loss of contracts or employment. That is why the law expressly allows you to seek compensation.
Liability for wrongful foreclosure can be borne by more than one party, depending on who caused the mistake.
1. The rightful party (the creditor): if the creditor has filed a petition for enforcement even though he knew or should have known that he had no right to enforce the debt, he is liable for the damage caused. Typically, for example, if the debt has already been paid or did not exist at all.
2. The bailiff: The bailiff is liable if he acted in breach of the law – for example, he did not verify the identity of the debtor sufficiently or he carried out the execution when he was not authorised to do so. His liability is governed by the Execution Code.
3. State: The State is liable for maladministration or unlawful decisions under the Law on State Liability for Damages. Therefore, if the wrongful execution was caused by an error of the court (for example, an illegal judgment or a delay in stopping the execution), it is the state, represented by the Ministry of Justice, that you can turn to.
We can help you verify whether your foreclosure was unjustified and secure a dismissal and damages. We will handle everything quickly and without unnecessary delays. Contact us today and get the justice you deserve.
There are two ways to claim compensation for wrongful execution – out of court or through the court. First, you should contact the Ministry of Justice and submit a written request for compensation. In your request, you must describe how the unlawful execution occurred, i.e. what unlawful decision or incorrect official procedure caused it, and also state what specific damage this situation has caused you. This may include, for example, amounts wrongfully debited from your account, bank charges or legal costs. You should attach evidence to your claim – for example, a decision to stop the execution, bank statements, certificates of deductions from your wages or expert reports. The Ministry usually has three months to process such a request. If it disagrees with your claim or rejects it outright, you have the option of pursuing your claim through the courts.
In such a case, you can sue the state, specifically the Czech Republic represented by the Ministry of Justice, under the Act on Liability for Damage Caused by a Decision or Improper Official Procedure in the Exercise of Public Authority. In court proceedings, it is very important to proceed professionally – to formulate the claim correctly, to provide evidence, to quantify the amount of damage and non-pecuniary damage and to take into account all legal arguments. Therefore, you should not embark on either journey without the assistance of an experienced lawyer who will assess your situation, prepare the necessary documents and ensure that your claim is pursued in an efficient and timely manner. We can help you with everything from drafting your claim to communicating with the Department to representing you in court, if necessary.
The law distinguishes between two types of compensation – pecuniary and non-pecuniary damages, both of which you can claim in the proceedings. Property damages include anything you actually lost or had to pay because of the wrongful execution. This could include money wrongfully taken from your account, bank charges, lawyer’s fees or even lost earnings, for example if you lost a business opportunity or job because your account was blocked.
Non-material damage is more about the personal and psychological side of things. If the foreclosure has caused you stress, violated your dignity, damaged your reputation or exposed you to public shame, you are entitled to financial compensation for these effects as well. The court will take into account the seriousness of the interference and how long the consequences have lasted.
And if the state or other responsible body does not pay compensation on time, you can also claim interest for late payment to compensate you for the time you had to wait for compensation. We can help you with everything from quantifying your damages to recovering the full amount, including interest.
Tip: An injury accident can change your life in seconds. Whether it’s a car collision, an accident with a cyclist or a collision with a pedestrian, the consequences can be serious. Do you know how to get fair compensation for a car accident injury? Find out in our article.
Wrongful foreclosure is often associated with emotional pressure, but it pays to act systematically.
In order to have a chance of success, we recommend:
Timeliness is crucial – you must file a claim for compensation within 3 years of the date you became aware of the damage (objectively, within 10 years of the damage occurring).
The whole process of claiming compensation for wrongful execution begins with the submission of an application to the Ministry of Justice. At this stage, the Ministry assesses whether the conditions for state liability have been met – i.e. whether there has actually been an unlawful decision or maladministration that has caused you damage. After examining all the evidence, the Ministry will either decide whether you are entitled to compensation and award you a certain amount, or reject your claim.
If you disagree with the outcome, you can go to court and sue the state. The court proceedings will then prove the circumstances of the damage, the amount of the damage and the liability of the parties involved. Experience shows that out-of-court settlements are rather rare and most cases end up in court. We therefore strongly recommend that you consult with a lawyer from the outset. We will help you prepare the application, evaluate the evidence and, if necessary, represent you in the court proceedings to maximise your chances of success.
A wrongful foreclosure is not just a “glitch in the system”. It is an intrusion into your life that can cause you financial and personal harm. If it is proven that the foreclosure was wrongfully conducted, you are entitled to full compensation for your damages and non-pecuniary damages. Don’t be afraid to fight back – the law is on your side.
Tip: For most people, buying a property is the biggest investment of their lives. But what if after a few weeks or months it turns out that the house is not as perfect as it seemed when you bought it? If you can prove a hidden defect, you may be entitled to compensation for the damage caused by that defect. Read more in our article.
If a bailiff has blocked your account, deducted money from your wages or seized your property, and it later turns out that you didn’t owe any money, you are entitled to full compensation under the law. Unlawful execution is an unlawful interference with your rights and can cause not only financial loss, but also damage to your reputation and psychological harm. The lender, the bailiff or the state can be held liable depending on who caused the mistake. You can seek compensation out of court, by filing a claim for compensation with the Ministry of Justice, or through the courts if the Ministry refuses your claim. You can claim compensation for material damages, i.e. amounts you have wrongly paid, legal costs or lost profits, as well as for non-material damages, such as stress, injury to dignity or damage to your reputation. In addition, if the state fails to pay you on time, you may also be entitled to interest on late payment. In order to be successful, it is important to carefully document all the circumstances and evidence – the decision to stop the execution, bank statements or receipts for deductions.
The out-of-court phase usually lasts 2-3 months. If it goes to court, the proceedings can drag on for several months to a year, depending on the complexity of the case.
Yes. The law also allows you to claim compensation for non-pecuniary damage if the wrongful execution has affected your dignity, family life or reputation.
If the court accepts your claim, the state must also pay your reasonable legal costs.
Yes, but you need to keep an eye on the deadlines – you must make a claim within 3 years of becoming aware of the damage. After 10 years from the end of the foreclosure, the claim is no longer valid.
Get compensation for harm or damage – quickly and without stress. We will assess your chances, propose a strategy and prepare a challenge. All within 48 hours of placing your order. If necessary, we will then file a lawsuit and arrange legal representation. We will stand up for you fully.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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