Commercial Debt Litigation (B2B Debt Litigation) is a legal process aimed at the forced enforcement of financial obligations between business entities. When negotiations and payment reminders fail, the court remains the only effective way to recover owed funds. In Georgia, non-payment between companies is a serious issue that disrupts cash flow and threatens the existence of honest businesses. Debt recovery requires swift and decisive action, as over time, the debtor may alienate assets or go bankrupt. Legal.ge offers access to experienced lawyers specializing in commercial debt recovery who utilize all legally available mechanisms — from summary proceedings to asset freezing and seizure.
What Does Commercial Debt Litigation Cover?
This service covers the full cycle of debt recovery, both pre-litigation and post-judgment. Key components include:
- Debt Validity Assessment: Analyzing contracts, invoices, and acceptance acts to determine the prospect of a lawsuit.
- Payment Order Proceedings: A simplified and inexpensive court procedure for undisputed claims, providing quick results.
- Lawsuit for Principal, Interest, and Penalties: Preparing a full lawsuit, including claims for damages and contractual penalties.
- Interim Measures (Freezing Orders): Applying to the court to freeze the debtor's accounts and property before the dispute concludes.
- Insolvency (Bankruptcy) Proceedings: If the debtor company is insolvent, representing the creditor in rehabilitation or bankruptcy processes.
- Enforcement Management: Working with the National Bureau of Enforcement after obtaining a court judgment to actually recover the funds.
Real-World Scenarios Where You Need This Service
For example, you supplied goods to a distribution company that hasn't paid for 3 months and stopped answering calls. You learned they are selling their warehouse. If you don't file a lawsuit immediately and request a freezing order on the warehouse, the company will be left empty, and you will recover nothing. A lawyer promptly prepares the claim and the motion for seizure. Another example: you have a contract stipulating a high penalty for late payment. The debtor refuses to pay it. In court, the lawyer will justify the validity of the penalty and secure a judgment for the full amount.
Georgian Legal Framework
Commercial debt recovery is based on the "Civil Code of Georgia" (breach of obligations) and the "Civil Procedure Code". Article 305 of the CPC (summary proceedings for payment orders) is important for speeding up the process. Regarding enforcement, the "Law on Enforcement Proceedings" applies. Also, the "Law on Rehabilitation and the Collective Satisfaction of Creditors" (2020) regulates relations with insolvent companies. The statute of limitations is typically 3 years, after which claiming the debt in court becomes impossible.
The Process Step-by-Step
1. Documentation Gathering: Collecting invoices, contracts, and reconciliation acts. 2. Warning: Sending a formal demand letter (mandatory in certain cases). 3. Lawsuit/Application: Filing with the court (via summary or standard procedure). 4. Freezing Order: Freezing assets. 5. Judgment: The court orders payment. 6. Enforcement: Obtaining a writ of execution and proceeding with forced auction or bank garnishment.
Why Choose a Specialist on Legal.ge?
Debt recovery is not just about writing a lawsuit; it's a strategic battle for assets. On Legal.ge, you will find lawyers experienced not only in court but also in tracing and recovering actual funds. Don't wait until your debtor goes bankrupt — act in time.
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