General prerequisites for contesting the debtor’s legal actions

Provision of Article 280, paragraph 1 of the Law on Contracts and Torts (“Official Gazette of SFRY”, no. 29/1978, 39/1985, 45/1989 – decision of the Constitutional Court of Yugoslavia and 57/1989, “Official Gazette of the Republic of BiH”, no. 2/1992, 13/1993 and 13/1994 and “Official Gazette of FBiH”, no. 29/2003 and 42/2011 hereinafter referred to as the LOCT) stipulates that any creditor whose claim is due for payment and regardless of when it arose, may contest the legal action of his debtor taken to the detriment of the creditor; while according to paragraph 2, it is considered that the legal action was taken to the detriment of the creditor if, due to its enforcement, the debtor does not have sufficient funds to fulfill the creditor’s claim.

Article 281, paragraph 1 of the LOCT stipulates that the disposition of encumbered assets may be contested if, at the time of disposition, the debtor knew or could have known that the disposition was causing damage to his creditors and if it was known or could have been known to a third party with whom or for whose benefit the legal action was taken. Pursuant to paragraph 3 of the same Article, in the case of free dispositions and equivalent legal actions, the debtor shall be deemed to have known that the disposition caused damage to creditors and contesting these actions shall not require that the third party was or could have been aware of it.

Pursuant to the cited legal provision of Article 280 of the LOCT, the general prerequisites that must be met in order for the creditor to be able to contest the legal action of the debtor are:

  • that there is an overdue payment claim,
  • that the debtor does not have sufficient funds to meet the creditor’s claim,
  • the existence of the debtor’s legal action taken to the detriment of the creditor,
  • existence of damage to the creditor, where contesting would allow settling the creditor.

On 20 December 2023, the Cantonal Court in Sarajevo, case number 65 0 Ps 831343 21 Pž, rejected the appeal of the opposing party as unfounded, and confirmed the first instance judgment of the Municipal Court in Sarajevo of 12 July 2021, case number 65 0 Ps 831343 21 Ps, which fully protects the interests of our client in this procedure.

If you need advice on the General Prerequisites for Contesting the Debtor’s Legal Actions or you need a commercial law attorney in Sarajevo for your company or for your business idea, then you are in the right place and you can contact our corporate law attorneys  directly by phone (+387 62 342 463), WhatsApp, Viber or e-mail (