Seizure (penhora)
Updated on
A penhora is the seizure of a debtor’s asset in enforcement proceedings so that it can be sold and the money used to pay the debt.
The penhora is the step that comes before the sale. When a debt goes unpaid and the creditor starts enforcement proceedings, the debtor's assets can be seized: they are tied to the proceedings until they are sold or the debt is paid.
For real estate, the seizure is made by a notice to the (CPC article 755; for tax debts, CPPT article 231). The owner remains the owner, but later dealings do not hold against the enforcement: under article 819 of the Civil Code, selling, encumbering or letting seized property cannot be invoked against the enforcement.
A seizure is limited to the assets needed to pay the debt and the costs of the proceedings (CPC article 735).
Example
Illustrative example: a person owes €30,000 and does not pay. The creditor starts enforcement and the seizes a plot of land owned by the debtor. The seizure is registered. If the debt is not paid, the plot is sold by .
In practice, at an auction
Every property sold in enforcement by the Tax Authority or on e-Leilões is under seizure. There may be several seizures on the same property, from different creditors. With the sale, seizures lapse and are cancelled at the registry (article 824 of the Civil Code). The auction can be cancelled right up to the end if the debt is paid.