With the deepening of international trade and relations, cross-border debt recovery is becoming increasingly relevant. This applies to cases where the creditor and debtor are located in different countries. For example, a Georgian company supplied goods to a foreign partner who failed to pay, or a foreign investor lent money to an entity registered in Georgia. International debt collection is the most legally complex category because it raises the issue of jurisdiction: which country's court should hear the dispute and how the decision should be enforced abroad.
International debt recovery requires deep knowledge not only of local legislation but also of private international law and conventions. The most critical stage is the recognition and enforcement (exequatur) of a foreign court or arbitration decision in Georgia, or vice versa. Legal.ge gives you access to lawyers who have experience in international disputes and partner networks in other countries, which simplifies the process.
What Does International Debt Collection Service Cover?
This service covers the full spectrum of cross-border disputes:
- Determining Jurisdiction: Analyzing the contract to determine which country's law applies and where the dispute should be heard.
- Recognition and Enforcement of Foreign Judgments: Legalizing a foreign court or arbitration decision in Georgia through the Supreme Court.
- International Arbitration: Representation in international arbitration institutions (ICC, LCIA, etc.) or local international arbitrations.
- Asset Tracing Abroad: Cooperating with foreign colleagues to locate the debtor's assets in other jurisdictions.
- Negotiation with Foreign Debtors: Communication at the pre-trial stage, which is often effective due to reputational risks.
Common Real-World Scenarios
International debt practice is diverse:
The first scenario is "Exporter and Unpaid Invoice." A Georgian wine company sent products to Europe, but the buyer is not paying. The contract states that the dispute will be heard in the buyer's country. It is necessary to involve a local lawyer through a partner network.
The second case is "Foreign Investor." A foreign investor lent money to a Georgian developer company. The company is not paying. The investor holds a London arbitration award. Now this award needs to be enforced in Georgia to seize the company's assets in Tbilisi.
The third scenario is "Online Fraud." A person paid money to a foreign online store or investment platform but did not receive the service. This is a complex case requiring the involvement of international investigative mechanisms.
The fourth situation is "Hidden Assets." The debtor is in Georgia, but assets have been moved to an offshore zone. Complex corporate investigation is required.
Georgian Legal Framework and Regulations
International enforcement relies on the following acts:
- Law on Private International Law: Defines applicable law and the competence of Georgian courts.
- 1958 New York Convention: Regulates the recognition and enforcement of foreign arbitral awards. Georgia is a party to this convention.
- Bilateral Treaties: Georgia has signed legal assistance treaties with many countries, simplifying the process.
Process and Stages
If a decision already exists abroad, it must be translated, apostilled, and submitted to the Supreme Court of Georgia (in case of arbitration) or the Court of Appeals (in case of a court judgment). The court checks whether the decision contradicts Georgian public order and whether procedural norms were violated. Upon recognition, a writ of execution is issued, which is submitted to the National Bureau of Enforcement.
Why Legal.ge?
International debt collection is "top-tier" legal work. A mistake in choosing jurisdiction or procedures can mean years of dragged-out processes and wasted costs. Legal.ge connects you with experts who understand the global legal system and can protect your interests beyond borders.
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