Automated Decision-Making Planned for Certain Simple Debt Collection Cases
The Saeima Legal Affairs Committee Supports Automated Decision-Making in Certain Simple Debt Collection Cases
On Wednesday, 6 May, the Legal Affairs Committee of the Saeima approved for the third reading amendments to the Civil Procedure Law that provide for the full automation of the enforcement of obligations under the warning procedure. This means that, in certain simple debt collection cases, courts will in future be able to issue decisions automatically, without an individual assessment by a judge in each case.
The amendments will apply to cases in which the enforcement of obligations is permitted under the warning procedure, namely simple debt recovery cases. Even now, judicial decisions in such proceedings are made according to clearly defined statutory criteria, and the planned automation will make this procedure more efficient.
At the same time, the time limit for submitting objections is to be extended from the current 14 days to 30 days. This means that debtors will have more time to receive the warning notice and assess their options. The law will also expressly provide a mechanism enabling the court to correct errors arising during automated decision-making, either on its own initiative or upon application by a party to the proceedings.
According to the Ministry of Justice, which drafted the amendments, automation will apply only to cases where there is no substantive dispute or where the debtor has been given the opportunity to create such a dispute by submitting objections within the prescribed period. As a result, automation will significantly reduce the workload of courts and allow judges to devote more time to hearing more complex civil cases.
The Civil Procedure Law provides that enforcement of obligations under the warning procedure is permitted only in simple debt recovery cases, for example where the debt can be proven by documents such as a contract or an invoice. This procedure cannot be applied if the debt exceeds EUR 15,000, in cases involving joint and several payment obligations, or in other situations specified by law.
The amendments also provide for the transfer of the functions of the Insolvency Control Service, which will be assumed by the Ministry of Justice and the Court Administration. In future, complaints regarding the actions of insolvency administrators will be examined by the courts when reviewing decisions adopted by the Ministry of Justice, while matters relating to the payment of insolvency proceedings deposits will be administered by the Court Administration. A clear system of judicial oversight over institutional decisions will also be introduced, establishing procedures for appealing such decisions.
The amendments to the Civil Procedure Law are planned to enter into force on 1 July 2026. Before that, the amendments must still be considered by the Saeima in the third and final reading.
Information provided by the Saeima of the Republic of Latvia.