The Legal Framework of Commercial Debt Recovery
Recovery of debts between companies proceeds in two stages: first the claim matures into a due title — a court decision or a notarized agreement — and then the National Bureau of Enforcement switches on the mechanism of compulsory enforcement. The Law of Georgia on Enforcement Proceedings regulates this second stage, and its four central norms form the frame of the creditor's route: acts subject to enforcement in Article 2, the writ of enforcement in Article 20, the commencement of enforcement in Article 25, and the enforcement fee in Article 38.
Knowing the rules saves the creditor time and expense: the route from obtaining the writ to the levy is precisely established, and the correct placement of each step determines how fully the debt returns.
Which Acts Are Subject to Enforcement
Article 2 lists what is subject to enforcement under the procedure established by this law. Central for a commercial creditor are court decisions, rulings and orders on civil and administrative cases that have entered into legal force; but the list does not end there — subject to enforcement are also, for example, a conviction on a criminal case that has entered into legal force as to the imposition of a fine or deprivation of property, a decision rendered immediately enforceable, a court order on the return of a leased (leasing) object, an arbitral award and a decision of a foreign court whose enforcement is provided for by the legislation.
This list shows the creditor the routes: a debt may be recovered through a court decision, an order of simplified proceedings, arbitration or on the basis of a notarized agreement, and the choice of each route depends on the complexity of the dispute and the time budget.
The Writ of Enforcement and Its Issue
Under Article 20, enforcement proceedings are not allowed without a writ of enforcement. The writ is issued on the decision subject to enforcement under this law, and it is issued to the creditor — it is precisely the creditor who applies for it and then presents it to the Bureau. The law also names the exceptions where proceedings begin without the writ — including the enforcement of pledge and leasing certificates and the order for payment of a debt — but the basis for enforcing a court decision is always precisely the writ.
An exception is also a court ruling adopted in the course of enforcement proceedings: it is enforced without a writ, on the basis of a ruling that has entered into legal force or one subject to a private complaint. Suspension of enforcement without the writ is possible on the basis of a court decision that has entered into legal force.