Vytautas Nekrošius. Why destroy a secure debt assortment system? | Enterprise

In accordance with the concept of ​​the Ministry of Finance, sooner or later VMI may write off funds from debtors’ accounts for, for instance, unpaid fines or different unfulfilled obligations. Accordingly, bailiffs might be entrusted with gathering money owed to the state solely in far more difficult circumstances, when the debtor doesn’t have enough funds in his accounts.

For some cause, the state is making an attempt to alter a very regular functioning system. Presently, it isn’t essential to pay a single euro from the finances for the gathering of money owed to the state, as a result of that is finished by bailiffs. If a big a part of these features might be transferred to a state establishment, for instance, VMI, then it will likely be essential to create an enormous equipment, to assist all the system, which is able to, accordingly, result in giant finances prices.

What’s extra, the state is decided to gather cash itself solely from these debtors from whom it’s best to put in writing them off. Extra advanced circumstances ought to proceed to be administered by bailiffs.

Which means that we need to break the cross-funding mannequin of debt assortment, the place the prices which might be incurred when the gathering course of is extra difficult are lined on the expense of simpler debt assortment. If the state “grabs the cream”, and the bailiffs are left with solely downside collections, the working capital of the bailiff places of work will lower drastically.

On this case, the ranks of the bailiffs themselves within the nation would shrink considerably. And this may result in a a lot worse availability of those companies, as it might occur that bailiffs’ places of work in smaller cities merely shut and stay lively solely in massive cities. As well as, the elevated prices would make their companies considerably dearer.

However, the proposed mannequin will not be honest to debtors both. If an individual has sufficient cash in his accounts, however maliciously or due to stupidity doesn’t pay the fines, VMI will simply write off the required quantity, taking a charge set by him, which, as promised, might be symbolic.

Accordingly, if one other resident is struggling and his money owed mightn’t be collected instantly, then the method would go to the bailiffs. The latter would cost increased charges as a result of elevated prices. So the ultimate end result might be that the wealthier would pay considerably much less for debt assortment than folks from socially weak backgrounds.

Legally, the state can change the system because it sees match. It will probably select, it may even legitimize state bailiffs. Solely we already had them – there was plenty of expense and no optimistic end result.

In conclusion, the present system is working completely and, most significantly, it’s budget-friendly. Subsequently, the logic of why it ought to be taken and destroyed, thus inflicting chaos, is totally incomprehensible.