Asset tracing in Georgia is carried out with the lawful instruments of the National Enforcement Bureau: the Law of Georgia on Enforcement Proceedings empowers the enforcement officer to oblige the debtor to submit an inventory of his property, to seek the debtor's search through the police where needed, and grants the parties the rights to examine the enforcement file and to challenge the officer's acts. This page explains these mechanisms under Articles 18, 19, 30 and 42 of the law.
Investigation of the debtor's financial position
Under the second part of Article 42, the National Enforcement Bureau may oblige the debtor to submit an inventory of his property and information on the legal relationships connected with it. In the inventory the debtor must indicate the basis and evidence of his claims against third persons, and also the property to the demand of which third persons are entitled — the inventory thus captures not only things but also claims.
Under the third part, the debtor gives a written guarantee that all data requested have been submitted as correctly and completely as possible; after giving the guarantee, he must additionally notify the Bureau in writing of any newly acquired property or legal relationship. If the debtor fails to submit the inventory within 5 days of the request, refuses to give the guarantee, or knowingly submits incorrect information, he bears liability in the manner established by Georgian legislation; the Bureau itself also verifies the correctness and completeness of the debtor's data.
In practice, this means tracing does not remain on paper: the inventory captures both the items available for realisation and the debtor's ongoing relationships with third persons — claims against banks, partners and buyers that may become objects of enforcement. The written guarantee weighs on the completeness of these data: after it is given, the debtor must notify the Bureau of every subsequent change in the described relationships, otherwise the Bureau's verification will reveal the defect.
Search for the debtor
Where the debtor's whereabouts are unknown, or the debtor deliberately evades performance of the obligation, Article 30 entitles the National Enforcement Bureau to apply to the court with a substantiated motion, on the basis of which the court issues a ruling on the search and production of the debtor through the police. In the creditor's interest, enforcement thereby reaches even a debtor who is physically absent.
The parties' powers in the tracing process
Under Article 18, the creditor and the debtor may attend the enforcement actions, examine the enforcement materials and obtain necessary information — except commercial, tax and banking secrets; they may dispute the ownership or the value of property, and point the Bureau to persons interested in acquiring the property subject to realisation.
An enforcement officer's act may be appealed to the chairperson of the Bureau within 15 calendar days of its commission, or directly to court within 1 month; the chairperson's decision on the complaint is itself appealable within 1 month of its delivery. Where the parties settle, they hand the written settlement to the Bureau, which forwards it within 3 days to the competent court. On a dispute over market value, annulment of the valuation, of acts based on it and of the auction result is not allowed if the starting price announced at the first auction does not exceed the market value.
In addition, under the third part of Article 18 the creditor and the debtor may apply to the court on postponement or distribution of enforcement or on other enforcement-related actions — the tracing process is thus linked to judicial control as well.
Access to the enforcement file
Article 19 performs the informational function: a party to the proceedings may examine the materials of the enforcement file and obtain copies, except documents containing commercial or other confidential information. A participant in the proceedings may examine those materials which directly and immediately affect his right or lawful interest. The results of tracing are thus fully accessible to the party.
Frequently Asked Questions
Below we answer questions about the instruments of asset tracing.
What must the debtor's inventory contain?
The debtor's property, the legal relationships connected with it, and claims against third persons, with their bases and evidence.
What happens if the inventory is not submitted or is false?
Non-submission within 5 days, refusal to give the guarantee, or knowingly incorrect information triggers liability established by legislation.
How is an absconding debtor traced?
The Bureau applies to the court with a substantiated motion; the court issues a ruling on search and production through the police.
Can the parties appeal the officer's acts?
Yes — to the Bureau's chairperson within 15 calendar days, or to court within 1 month; the chairperson's decision is appealable within 1 month of delivery.
What information can the parties access?
The enforcement file and copies of it, except documents containing commercial, tax and banking secrets.
How We Help on Legal.ge
The Legal.ge team assists creditors in tracing a debtor's assets: we analyse what can be demanded in the inventory, monitor the Bureau's actions and prepare appeals.
For debtors, we help perform the obligation lawfully and sensibly, with subsistence interests protected. Write to us on Legal.ge.