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How are the mutual assets between the judgement debtor and others settled?

(i) If unable to identify the proportion of asset ownership or land use rights of the judgement debtor in mutual assets for judgement enforcement, the Civil Judgement Enforcement Agency shall notify to the judgement debtor and the co-owners of the assets or land use rights so they can reach an agreement on division of such assets or request the Court to settle the case in accordance with civil procedure.

After 30 days from the date of receiving the notification, if no agreement between the co-owners has been reached, or if the agreement violates the law or the co-owners cannot reach an agreement and they have not requested the Court to settle the case, the Civil Judgement Enforcement Agency shall notify the judgement creditor of their right to request the Court to identify the proportion of asset ownership or land use rights of the judgement debtor in the mutual assets in accordance with civil procedure.

After 15 days from the date of receiving the notification, if the judgement creditor fails to request the Court to resolve the matter, the Civil Judgement Enforcement Agency shall request the Court to identify the proportion of asset ownership or land use rights of the judgement debtor in the common assets according to civil procedure.

The Civil Judgement Enforcement Agency shall then handle the assets according to the Court’s decision.

(ii) Distrained assets that have mutual ownership, of which ownership proportions of co-owners have been identified, shall be handled as follows:

    1. For mutual assets which can be divided, the Civil Judgement Enforcement Agency shall apply coercive measures regarding the asset proportion owned by the judgement debtor;
    2. For mutual assets which cannot be divided or in case the division considerably reduces the asset value, the Enforcement Agency may apply coercive measures to all assets and pay other co-owners the value in proportion to the assets under their ownership.

(iii) Co-owners have the preemptive right to buy the asset ownership proportion of the judgement debtor in the mutual assets.

Before the initial sale of the asset ownership proportion in the mutual assets, the enforcer shall determine a time limit and provide notice to co-owners to buy the asset ownership proportion of the judgement debtor at determined prices within 3 months for real estate and 1 month for movables. For subsequent asset sales, the time limit is 15 days after a valid notification is made.

Within 5 working days after the time limit for the preemptive right expires, if co-owners do not buy the assets, the assets may be sold to other parties under the law.

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