Major changes to enforcement procedures in the Federation of Bosnia and Herzegovina are reshaping the balance between creditor rights and debtor protection and include:
- Protection of the debtor’s only home
As a general rule, real estate that serves as the debtor’s only home can no longer be subject to enforcement. Exceptions remain where the debtor has explicitly consented or where the claim is secured by a mortgage or other voluntary security interest.
- Alignment with ECHR standards
The amendments reflect the case law of the European Court of Human Rights under Article 8 of the European Convention on Human Rights, following decisions such as McCann v. the United Kingdom, Zehentner v. Austria and Rousk v. Sweden – emphasising that loss of one’s home must always be proportionate and subject to judicial scrutiny.
- Value-based proportionality test
Enforcement against real estate is now excluded where the claim is less than one-third of the property’s market value, unless the debtor consented or the claim is secured.
- Co-owned property protections
Enforcement is generally limited to the debtor’s ownership share, while the sale of the entire property now requires explicit written consent from non-debtor co-owners.
- More disciplined procedures
The amendments introduce stricter deadlines, limit postponements, and refine auction rules to improve predictability and efficiency.
- New auction safeguards
Real estate can now be sold at:
- minimum 70% of assessed value at the first auction
- minimum 50% at the second auction
If unsold, ownership may transfer to the creditor proportionate to its claim.
Compared to Republika Srpska, the Federation now takes a more explicit human-rights-oriented approach, while still preserving the enforceability of legitimate claims.
A notable development for creditors, debtors, investors, and practitioners navigating enforcement risks in Bosnia and Herzegovina.
More on this by Senior Partner Miloš Mitić.
