Online bailiff auctions coming soon

According to the National Council of Bailiffs, the bailiffs' e-auction portal will be launched early next year. The work has just entered the final phase of testing advanced verification and security features for sensitive data. The portal will dramatically increase the accessibility of auctions, which is expected to translate into benefits for both recovery creditors and debtors.

The e-auction system works well in many European Union countries, e.g. Hungary or the Baltic countries neighbouring Poland. It is a desirable solution in developed economies, civilising the process of monetising debtors' assets and satisfying creditors' claims and increasing its efficiency. The Polish system follows the best examples in the industry and also draws on the best commercial models.

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Statistics from the NCR show that, at the moment, revenue from auctions of movable assets only accounts for around 0.7% of the total revenue of bailiffs' offices. Creditors increasingly prefer this method of enforcement, perceiving it as inefficient in relation to outlays. Allowing a larger group of bidders to bid is also a problem, as auctions organised, for example, at the debtor's home and held at a specific time on a specific day significantly limit the ability of a larger number of people to participate. This results in ineffective auctions where there were not enough bidders or minimum prices were not achieved.

The psychological element is also not insignificant: auctions are generally held at the debtor's residence or business premises, which makes potential buyers reluctant to buy.

Enforcement proceedings are geared towards obtaining a claim for the creditor in accordance with a previously issued enforcement order. The primary goals of the proceedings are speed and efficiency. Representatives of the NCB argue that the portal will certainly also serve its purpose in increasing the efficiency of the work of bailiffs across Poland.

The portal is good news for debtors, creditors and bidders - is it possible?

Thanks to e-auctions, assets seized by bailiffs will be put to better use, i.e. online auctions will significantly increase the number of people with access to the offer, which will affect prices and increase the efficiency of transactions. Consequently, the debtor's assets will be monetised at a higher price and will satisfy creditors' claims to a greater extent. This means that bailiffs in many situations will not have to seize all of the debtor's assets, but only the part that will satisfy claims effectively.

The same mechanism of increased availability will result in creditors satisfying their claims to a greater extent and much more often in full.

The bailiffs' e-auctions are also good news for anyone who would like to participate in auctions. Once they have authenticated their details, they will be able to participate in auctions on a regular basis, which will benefit all participants in the process in the long term.

The material appeared on eGospodarka.pl:

13 December 2018:
" Bailiff e-auctions to start soon