Ammon News - The Legislation and Opinion Bureau has published a draft bill amending the Execution Law for 2026, proposing changes to debt collection procedures. The key amendments include expanding the powers to impose travel bans on debtors and seize their assets, setting a minimum monthly installment for debt settlement, allowing the use of electronic ankle monitors, and introducing measures to facilitate the disposal of seized assets.

A comparison of the draft with the current Execution Law and its latest amendments in 2022 shows that the proposed legislation seeks to expand the measures available to creditors to recover their dues, while retaining the main restrictions on imprisoning debtors. It also proposes changes to settlement procedures, asset seizures, and appeals against enforcement decisions.

The proposed travel ban provisions stand out as one of the most significant changes. Under the draft, the head of the Execution Department would be authorized to ban a debtor from travelling at the creditor’s request until the debt is paid in full, without requiring the evidence currently stipulated regarding the debtor’s lack of a stable residence in Jordan, disposal or smuggling of assets, or the likelihood of leaving the country to delay enforcement.

Lifting travel bans in exchange for guarantees

The draft allows travel bans to be lifted in exchange for a guarantee ensuring enforcement. It also extends the period after which an enforcement case is automatically deemed inactive due to a lack of follow-up from one year to two years, while removing the provision requiring the head of the Execution Department to lift the travel ban when a case is left inactive.

Regarding debt settlements, the draft introduces a minimum monthly installment of no less than 2% of the outstanding debt. Payments would begin 30 days after the initial installment is deposited, unless the parties agree otherwise. The minimum initial payment would remain at 15% of the amount awarded by the court, a rate that has been in effect since the 2022 amendments.

If a creditor rejects a settlement, the draft authorizes the head of the Execution Department, at the creditor’s request, to summon both parties to assess the debtor’s ability to pay or consider increasing the settlement amount. The creditor’s evidence may be heard before an appropriate decision is issued.

As for debtor imprisonment, the draft retains the maximum period of 60 days per year for a single debt, not exceeding 120 days regardless of the number of creditors. It also maintains the prohibition on imprisoning debtors who are unable to meet a contractual obligation, except for obligations arising from real estate lease agreements or employment contracts.

Obliging the debtor to wear an electronic ankle monitor in several cases

The draft bill introduces an additional circumstance in which a creditor may request the imprisonment of a judgment debtor without having to prove the debtor’s ability to pay or give them an opportunity to propose a settlement. This would apply if the debtor refuses to comply with a court ruling requiring them to perform an act or refrain from doing so. Existing cases include obligations related to alimony, dowry, compensation for damages arising from a criminal offense, and failure to comply with rulings on child handover and visitation.

The draft also allows debtors to be required to wear electronic ankle monitors in cases where imprisonment is prohibited. This measure would form part of the precautionary measures available to the head of the Execution Department, alongside travel bans, under regulations to be issued for this purpose.

Regarding asset seizures, the draft authorizes the head of the Execution Department to seize a debtor’s assets immediately after a lawsuit is filed, at the judgment creditor’s request, if the enforcement instrument is a court ruling. For other enforcement instruments, evidence that the debtor has begun transferring or smuggling assets is required. However, enforcement proceedings may not be completed before the notification period expires.

Handling seized vehicles

The draft also allows debtors in enforcement cases involving commercial debts to be ordered to disclose their sources of income and assets sufficient to cover the debt within seven days of being notified of the order.

For seized vehicles, the head of the Execution Department may allow a debtor to deposit the vehicle at a location of their choice against a guarantee until a decision is issued on the transfer of ownership. The debtor may also request to take possession of the vehicle while the seizure remains in effect if the creditor fails to pursue its sale within 30 days from the day following notification of the seizure notice. The debtor must submit the request within 10 days of being notified of this option.

The draft further allows debtors to sell or mortgage seized real estate within 60 days from the day following the date of authorization, provided the transaction price is no lower than the property’s assessed value and the proceeds are deposited into the enforcement case account. Interested parties would also be allowed to challenge a property valuation before it is put up for auction.

Under the proposed auction rules, bidding for movable assets must start at no less than 50% of their assessed value. The successful bidder would be given three days to pay the purchase price, replacing the requirement for immediate payment. The draft also shortens the limitation period for hearing lawsuits seeking to rescind real estate sales on the grounds of procedural errors from one year to six months, in accordance with the applicable legal provisions.

The draft law changes the procedures for appealing decisions, allowing appeals to the Court of Appeal in cases involving the enforcement of judicial rulings valued at JD 50,000 or more, as well as cases involving the enforcement of mortgage deeds, instead of the Court of First Instance acting in its appellate capacity. Appeals against other decisions covered by the article will remain under the jurisdiction of the latter court.

The draft law also allows appeals to the Court of Cassation with permission in specific cases, including when appellate rulings conflict on the same issue, or when the value of an enforcement case reaches JD 1 million or more and involves a newly raised legal issue of significance, subject to the specified conditions.

Expansion of electronic enforcement

The draft law excludes enforcement instruments valued at JD 50,000 or more, as well as mortgage deeds, from the enforcement jurisdiction exercised by magistrates in areas where no Court of First Instance exists.

The draft law expands the use of electronic enforcement, making it the default method for registering cases, paying fees, submitting applications, serving notices, and conducting official correspondence. Paper-based procedures will remain permitted in cases of necessity, while the law will regulate when electronic procedures take effect and how deadlines for objections and appeals are calculated.

The amendments also expand the territorial jurisdiction of certain enforcement departments to include the debtor’s place of residence, raise the minimum judicial rank required to head an enforcement department from fourth to third grade, and introduce electronic publication as part of the procedures for announcing real estate sales.

The draft law also introduces amendments to the distribution of enforcement proceeds in cases involving mortgage deeds. It further provides for creditors or individuals who have received excess payments or amounts without legal entitlement to be treated as debtors in the same enforcement case for the purpose of recovering those amounts.

The draft contains 22 proposed amendments and has been put forward by the Legislation and Opinion Bureau for public consultation until November 3, 2026. Its provisions remain proposals and are not yet in force. If the law completes the legislative process and is enacted, it will enter into force 90 days after its publication in the Official Gazette.