Challenges of the Knowledge Society (Apr 2011)
ASSIGNMENT OF DEBTS AS PROVIDED BY THE NEW CIVIL CODE
Abstract
Assignment of debts is a procedure based on which a debt is transferred from an original creditor to a new creditor. This procedure consists in a bipartite agreement (free of charge or for consideration) concluded between the original creditor (acting as assignor) and the new creditor (acting as assignee); the debtor is not part of the agreement. Nevertheless, according to the provisions of the New Civil Code1, there are certain situations when the consent of the debtor is required (e.g. the debt is essentially related to the assignor’s person).As mentioned above, the main function of the debts assignment consists in transferring the debt. However, the doctrine and jurisprudence have revealed other functions of this legal procedure, e.g. payment of a debt that the original creditor (assignor) owes to the new creditor (assignee), guarantee the achievement of a receivable. Although extensively treated by Romanian scholars, the provisions of the New Civil Code bring certain amendments as regards the procedures to be observed in case of an assignment of debts. The purpose of this paper is to highlight the amendments brought by the New Civil Code and to explain their impact on the procedure under discussion.
