Practical guide
Handling a garnishment against a resident
When a resident racks up debts toward the building and does not pay despite reminders, the building manager can move toward garnishing their assets. This is not an improvised step: it requires an executive title first, then a formal demand notice, and finally the actual garnishment, served through a lawyer or, in the cases provided by Italian law, directly by the manager. This guide walks through the concrete steps of the procedure, what happens to the building budget in the meantime, and how to track every recovered amount without mixing up accounting entries. Software such as AmministraPro helps keep reminders, deadlines, and collected amounts organized throughout the whole process.
From the payment order to the executive title
The precondition for garnishment is holding an executive title. In the large majority of building cases this is a payment order obtained under article 63 of the implementing provisions of the Italian civil code, which allows the manager, backed by the assembly resolution approving the financial statement that proves the arrears, to request and obtain the order without filing an ordinary lawsuit. The payment order becomes enforceable if it is not challenged within forty days of service, or if the challenge is rejected by a court ruling.
Once enforceable, the title must be served together with the formal demand notice, giving the debtor ten days to pay. Only after this period expires without payment can the actual garnishment proceed. It matters that the manager keeps precise records of the service dates of the order, of when it became enforceable, and of the demand notice: the enforcement judge can request these details at any later stage.
The most common forms of garnishment in building management
In practice two forms are most frequent. Third party garnishment targets sums that third parties owe the debtor resident, typically wages, pension within legal limits, or the balance of a bank account. Real estate foreclosure instead targets the resident's own unit in the same building or other property they own, and is often chosen when debts are substantial and repeated over time.
Worth remembering is the third paragraph of article 63: whoever buys a unit is jointly liable with the seller for amounts owed for the current year and the previous one. This means that if the unit is sold during the procedure, the manager still has an additional recovery tool to evaluate together with the lawyer handling the case.
What happens to the building budget in the meantime
Throughout the procedure the building still has to cover its running costs, so the delinquent resident's share is normally advanced provisionally by the other residents, subject to reimbursement once recovery succeeds. It is essential that the assembly is kept informed of the state of the procedure when the financial statement is approved, with an updated list of outstanding receivables and the related legal actions underway, as good financial transparency practice requires.
Tracking the amounts correctly in accounting
Every amount recovered through garnishment should be recorded separating principal, statutory interest, and legal costs advanced by the building, because they receive different accounting treatment: the principal closes the resident's debt for building charges, interest is accessory income for the building, and reimbursed legal costs offset an expense the building already paid.
Software such as AmministraPro lets you record the collection linked to the original installment and the payment method through which it arrived (bank transfer from the court officer, bank assignment), so the resident's balance updates correctly and the following financial statement clearly shows what has been recovered and what is still outstanding.
Useful checkpoints for the manager to keep handy: verify the assembly resolution approving the financial statement before requesting the payment order, serve the demand notice and the garnishment promptly respecting legal deadlines, keep the assembly updated on the status of outstanding receivables, and record principal, interest, and recovered legal costs separately.
Frequently asked questions
Who can start a garnishment against a delinquent resident?
It is the building manager, based on an assembly resolution or otherwise within their ordinary management powers for debt recovery under article 63 of the implementing provisions of the Italian civil code, who takes action by obtaining the payment order and, through a lawyer, proceeding with the demand notice and garnishment. It is good practice for the assembly to be informed of the legal actions taken and their costs, which remain chargeable to the delinquent resident once recovered.
How long does it take to reach the actual garnishment?
Timing varies considerably depending on the court and whether the payment order is challenged. As a rough guide, if the order is not challenged, it takes about forty days before it becomes enforceable, another ten days for the demand notice, and then the technical steps of the garnishment itself, which can range from a few weeks to several months depending on the type of garnishment chosen and the workload of the competent court.
What happens if the resident sells the unit during the procedure?
Article 63 of the implementing provisions of the Italian civil code provides that whoever buys a unit is jointly liable with the seller for building charges of the current year and the previous one. This does not stop the procedure already underway against the seller, but it gives the manager, with the lawyer's support, an additional tool to also pursue the new owner for that period's charges.
How are amounts recovered through garnishment recorded in accounting?
Three components must be kept separate: the principal, which closes the resident's debt for building charges; statutory interest accrued, which is accessory income for the building; and legal costs, which reimburse an expense the building already advanced for the recovery action. Software such as AmministraPro lets you link the collection to the original installment and the payment method used, so the balance updates correctly and the next financial statement precisely reflects the situation.
Do the other residents have to cover the delinquent resident's share during the procedure?
Yes, provisionally: the building still has to pay suppliers and utilities, so the unpaid share is generally advanced by the other residents, subject to reimbursement once the procedure ends with recovery of the amounts. This is why it matters that the assembly is kept continuously informed of the status of outstanding receivables and ongoing legal actions, with an updated picture in the financial statement.
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