Debt collection & enforcement

Draft amendments to the Law on Taxes and Duties, out for consultation until 26 October, would require the tax authority to halt or not start undisputed tax-debt collection from a business's acquirer once the seller is declared insolvent, protecting other creditors.

In an LV portal Q&A, a deputy of the Sworn Bailiffs' Council addresses inconsistent bailiff practice in calculating the 6% statutory interest awarded by courts once a debtor has paid part of the debt. The Council and the Justice Ministry take the position that accruing interest should shrink in step with the shrinking unpaid principal, since interest is owed only on the outstanding balance. The answer is described as informational guidance, not binding on any specific enforcement case.

According to Firmas.lv data, the State Revenue Service issued a 9 October decision imposing a security measure on dairy producer Rankas Piens, barring registration of changes - including reorganisation, liquidation, or changes to officers and shareholders - in the commercial register. The measure is tied to the company's outstanding tax debt of roughly €62,000.

Following public consultation on Welfare Ministry amendments to the State Funded Pensions Law, commenters on the TAP legal-acts portal raised concerns that the amendments do not allow full withdrawal of second-pillar pension savings before retirement. One commenter proposes barring bailiffs from seizing pension payments, including second-pillar capital and lifetime annuity policies, for debt recovery, citing the constitutional right to a dignified old age. The article reflects individual public comments, not the ministry's or legislature's position.

IT firm Baltic Software Factory, together with Expert Quality and Lightsoft solutions, has sued the State Digital Development Agency (VDAA) in Riga City Court for EUR 871,200 over development of the SKENIS election sub-system, which the agency commissioned on 25 February 2026 and then unilaterally cancelled after delivery, citing an undisclosed security-agency opinion. The company argues the contract does not release the agency from paying for completed work once cooperation ends. VDAA declined to comment, saying it had not yet received the court documents.

The Council of Sworn Bailiffs reports that in several court districts the annual quota for accepting enforcement documents - for claims above EUR 10,000 where the creditor bears enforcement costs - has run out; the quota was already recalculated on 1 July and 1 September 2026 and will not be adjusted again this year. To preserve the constitutional right to enforcement, the Council asks bailiffs in the affected districts to keep accepting qualifying documents through year-end where the debtor's residence, assets or workplace fall in their district. The issue affects creditors seeking to start enforcement of larger debts before year-end.

This Q&A explains that Latvia's State Social Insurance Agency (VSAA) can withhold part of a maternity benefit for debt enforcement, since such benefits count as state social benefits subject to enforcement. The calculation protects a minimum amount — half the minimum wage (€390) plus €117 per dependent child — and withholds 30% of the remainder for the debt. In the example given, after withholding, €2,287.10 remained from an original €3,050 benefit.

Lawyer Jurijs Sokolovskis explains two mechanisms protecting residents from a neighbour's unpaid apartment debts. Under amendments to the Law on Residential Property, when an apartment is sold, the new owner assumes the previous owner's management and utility debts from the last three years, which the seller must disclose. Since March 1, 2021, when an apartment is sold at auction, management and utility debts are paid with priority up to 5% of the sale price — funds that previously went almost entirely to the mortgage creditor.

The article explains that once a person is officially declared missing, their relatives or other close persons can obtain the necessary personal data to handle practical and financial matters related to that person, including the missing person's debts and bank accounts.

Responding to a question about a message from a debt collector received without any prior notice from the original creditor, LV portāls explains that an out-of-court debt collector must give the debtor truthful and sufficient information about the legal basis of the debt and allow them to see the supporting documents. If the collector fails to do so or refuses to substantiate the claim, the debtor is entitled to dispute it and complain to the supervisory authority.

Answering a question about enforcing a real-estate tax debt against a co-owner's undivided share, LV portāls explains the forced-auction procedure and the rights of the other co-owners. The other co-owners must be notified of the upcoming auction, and the law gives them certain advantages in acquiring the share being sold, though this is not equivalent to a classic pre-emption right.

A legal Q&A on LV portāls explains that when all incoming funds are being seized from a debtor's bank account, this usually happens because the debtor has not contacted the bailiff or reported their income sources and amount. The bailiff has no visibility into the account balance, so without the debtor's active involvement, the statutory limits on withholding — such as preserving a minimum subsistence amount — cannot be applied.

Responding to a question about wage garnishment where the debtor also has other loan payments, rent, utility costs and dependants, LV portāls explains that a bailiff withholding sums from wages applies only the deduction limits and dependant allowances set out in the Civil Procedure Law, not the debtor's other voluntary obligations. The exact amount withheld depends on the type of enforcement and the debtor's income level.

The piece explains the common scheme where a debt-laden company's assets, staff and customers move to a new entity while liabilities stay behind in the old one. It notes that Article 20 of the Commercial Law provides that when a functioning business unit changes hands, its debts transfer with it, even absent a contract or if the new owner claims ignorance of the liabilities. This gives creditors legal grounds to pursue payment from a company continuing the same business under a different name.

LV portāls explains that a sworn bailiff may postpone an enforcement action such as eviction from housing only on a party's application or by a court/judge's decision under the Civil Procedure Law. Where debtor and creditor have agreed on voluntary settlement, the agreement must be submitted to the bailiff in writing, and additional child-protection rules apply in cases involving minors. A party may complain to court if the bailiff disregards the procedure.

The State Revenue Service and the Finance Ministry have agreed on support for Latvian producers and suppliers whose funds are frozen in a sanctioned foreign retail network. Companies unable to receive payment because of the sanctions will not be charged late-payment penalties on tax debt arising for that reason.

The Court Administration reports that since July 1, 2026, part of the mandatory obligation-enforcement warning procedure (SPIBK) has run fully automated, from application registration to decision drafting, without court staff involvement. Between July 1 and September 7, courts received 14,061 applications, registered and assessed 13,238 cases, and completed 2,067 cases, of which 1,540 decisions were generated entirely automatically after the debtor's response deadline expired. 823 applications were rejected due to Civil Procedure Law restrictions (invalid address, incapacity, deceased debtor, etc.). Over 233,000 SPIBK applications were filed in all of 2025, and nearly 150,000 in the first half of 2026 alone.

NRA.lv reports on the unfinished home of the Kalnozols family in Ropaži, which has gone to auction over unpaid real-estate tax debt. Sworn bailiff Raimonds Mežiņš held a first auction in late August with a starting price of €266,000, but the property did not sell. The family disputes the municipality's tax valuation and says nearly €500,000 was invested in the house, which is being auctioned for less than €300,000.

An LV portāls legal Q&A addresses a creditor trying to collect roughly €700 in phone-bill debt from an estate ten years after the debtor's death. It notes commercial claims generally carry a three-year limitation period under the Commercial Law, interruptible by a reminder or acknowledgment of debt, but the key question is whether the creditor timely filed a claim in the inheritance proceeding. Since it is unclear whether an inheritance case was ever opened, the advice is to consult a sworn notary to determine whether the creditor's rights have lapsed.

The courts portal explains that since 1 July 2026, in cases under the warning procedure for compulsory enforcement of obligations (SPIBK), court notices are generated and sent automatically, so they may arrive in the official e-address on Saturdays, Sundays and public holidays. If the debtor submits a reply via the e-case portal, the court ruling may be prepared and sent the same day; if no reply is received within 50 days, the system automatically generates a ruling, even if the deadline falls on a day off. The court urges people not to ignore notices received on days off and to check them on the Latvija.gov.lv portal.

On 2 September 2026, at the Ministry of Justice's discussion on the investment environment and legal protection, Andris Spore, Chairman of the Council of Sworn Bailiffs of Latvia (LZTI), stressed that it is not enough for a business to obtain a favourable judgment after several years if its enforcement drags on. The problems named were protracted recovery after judgment, abuse of procedural rights to delay enforcement and shortcomings in the mechanisms for realising security; he proposed simplifying and speeding up the enforcement of uncontested obligations and reforming not only litigation but also the enforcement of rulings.

The Council of Sworn Bailiffs of Latvia (LZTI) informs that sworn bailiff Gunita Špēle ceased performing her duties in Riga Regional Court district No. 73 on 31 August 2026; the district's case files are taken over by sworn bailiff Nataļja Bekasova (previously district No. 67). All amounts payable to district No. 73 are henceforth to be transferred to Treasury account LV34TREL919905400200B; parties to enforcement cases should contact N. Bekasova in Riga.

The head of the Latvian Association of Lawyers, Rihards Bunka, answers whether a wife is liable for a loan her husband took without her knowledge. He explains that under law and court practice each borrower is personally liable for their own obligations, and a loan to one spouse does not automatically make the other responsible for repaying it.

The consultation answers a consumer-credit borrower who can no longer keep up several loan payments: before terminating the contract and suing, the bank should generally give a chance to settle voluntarily, and the lender's duty to properly assess creditworthiness can affect the court's view. Contacting the creditor immediately about difficulties is advised.

The Council of Sworn Bailiffs warns of scam text messages threatening restrictions unless the recipient settles an alleged debt, with a link to a fake court ruling. The Council stresses these messages have nothing to do with real bailiffs and urges people not to respond.

The consultation explains that a debtor in collection proceedings can dispute the creditor's claimed amount by submitting evidence such as payment proof. Courts weigh evidence at their own discretion, and only the amount set in the judgment can be collected; debtors may also request deferral or installment payment under Civil Procedure Law Article 206.