New debt enforcement rules: Easier collection, stronger debtor protection

2026-03-16 - 07:47

The Government of Montenegro has proposed amendments to the Law on Enforcement and Securing of Claims to align with EU regulations, simplify cross-border debt collection, and clarify procedures, deadlines, and authorities in enforcement proceedings. The changes aim to improve legal certainty, protect the rights of debtors and creditors, and ensure more efficient debt recovery. The amendments introduce EU-aligned rules for cross-border account freezing, clarify the roles of public enforcement officers—including cases involving debtors outside Montenegro—and define enforceable documents while allowing flexibility to change enforcement methods if needed. They update rules on guarantees, pledges, notifications, public announcements, and deadlines for responses or instalment payments. Protections for debtors are strengthened, exempting social benefits, child allowances, and scholarships, and limiting execution on wages, pensions, or compensation. Rules for property sales at auctions, including minimum values and deadlines, are also defined, alongside procedures for the European Account Preservation Order to enable faster cross-border debt recovery. The proposed law, part of the government’s 2026 work programme, is intended to increase legal certainty, efficiency, and fairness in enforcement and is expected to be considered by Parliament in the third quarter of 2026.