All creditors will have equal opportunities to recover their debts from residents and companies
Since 14 September an Information System of Cash-Flow Restrictions (Lithuanian abbr. PLAIS) will be launched in Lithuania. The system developed by the state enterprise Centre of Registers will unify and opportunities of creditors and facilitate to recover debts - the funds under recovery will be debited automatically from the debtors' bank accounts to all creditors in proportion.
After the PLAIS starts operating all creditors including public authorities, companies and individuals will have the same opportunities to recover their debts from debtors that have accounts with local banks or credit unions. The new system shall handle the data on cash-flow restriction on a centralised basis: it will transmit restriction and debit orders to banks (including Šiaulių Bankas) or credit unions and allocate debtor's funds to all creditors in proportion.
According to the procedures currently in place first of all the funds used to be recovered to those creditors that were first to provide cash-flow restrictions and debit orders to the bank . Others had to wait for their turn and, for part of them, it was quite difficult to recover their funds. The PLAIS will ensure equal rights in debt recovery.
Cash debit orders will be submitted by the State Tax Inspectorate, Custom Office of the Republic of Lithuania, Sodra and bailiffs. The PLAIS will have access to the data stored in the National Courts Administration, Central Mortgage Office, Residents‘ Register Service and the Register of Legal Entities. The new system will be connected to the commercial banks and credit unions operating in Lithuania through the LITAS_KART system of the Bank of Lithuania.
While deployment of the PLAIS (until 14 September) there can occur some temporarily interruptions in informations systems of these institutions (for example, in fund debiting). They will be promptly removed.
The legal acts passed in December 2014 with respect to enforced debit of funds under recovery are as follows:
- Amendment No. XII - 1452 of the Code of Civil Procedure;
- Amendment No. XII - 1453 of the Civil Code;
- Amendment No. XII-1454 of the Law on Tax Administration;
- Amendment No. XII- 1455 of the Law on National Social Insurance, etc.