Sequestration of Assets in Appeal Cases

When a judgment or ruling on a monetary payment is passed and appealed to a higher court, the creditor can request sequestration from the district commissioner. This means certain assets of the debtor are temporarily placed in sequestration as security for the payment of the claim while awaiting the decision of the higher court.

This is done to protect the creditor's interests and increase the likelihood that they will receive payment of their debt.

Sequestration has similar legal effects as a seizure of assets.

If the judgment for monetary payment is upheld, the creditor can enforce the claim through a seizure if the debt is not paid by other means, and the sequestration is then lifted. Sequestration takes precedence over later seizures made on the same assets.

If the judgment is not upheld and the debtor is acquitted, the sequestration is lifted. The debtor may then have the right to compensation from the original creditor.

Cost

The fee for sequestration is 13,000 ISK. The fee is non-refundable, even if the request is withdrawn or sequestration does not occur.

If the district commissioner denies the request for sequestration, the decision can be appealed to the district court.