Consumer Debt Litigation concerns disputes between individuals and financial institutions (banks, microfinance organizations) or other creditors. This field is two-sided: on one hand, creditors need legal assistance to recover loaned funds, and on the other, citizens need protection from unfair terms, excessive interest rates, and illegal enforcement. In Georgia, over-indebtedness is a severe problem, and borrowers often find themselves in situations where accrued penalties exceed the principal amount several times over. Legal.ge offers a platform where you can find lawyers for both debt recovery (for creditors) and debt defense (for borrowers). A qualified lawyer can help you restructure debt, cancel statute-barred debts, or invalidate unfair claims in court.
What Does Consumer Debt Service Cover?
The service is tailored to the party's interests (creditor or debtor). Key areas include:
- Court Defense (for Borrowers): Preparing defense statements against lawsuits from banks and online lenders, requesting reduction of interest and penalties.
- Statute of Limitations Defense: If the debt is over 3 years old and the creditor hasn't sued, the lawyer requests dismissal of the claim based on expiration.
- Debt Restructuring and Settlement: Negotiating with the creditor for a new payment schedule or forgiveness of part of the debt.
- Stopping Illegal Enforcement: Challenging the process if the National Bureau of Enforcement acts unlawfully (e.g., selling a primary residence in violation of procedures).
- Creditor Representation: Assisting businesses in legally and effectively recovering debts from consumers through the courts.
Real-World Scenarios Where You Need a Lawyer
For example, a citizen took a 1,000 GEL loan, couldn't pay, and 5 years later received a court summons demanding 10,000 GEL. Without a lawyer, the court will likely grant the claim. With a lawyer, it can be proven that the claim is statute-barred (3 years passed) or the accrued penalty is disproportionately high, and the court may cancel the debt or reduce it to 1,000 GEL. Another example: a bank puts your apartment up for auction without proper notice. A lawyer can stop the auction by filing a lawsuit and demanding a review of the procedure's legality.
Georgian Legal Framework
Consumer disputes are regulated by the "Civil Code of Georgia". Article 625 is particularly important, capping the annual effective interest rate (currently 50%) and the amount of penalties. The "Law on Protection of Consumer Rights" also prohibits unfair contract terms. The statute of limitations for contractual claims is 3 years (Civil Code Art. 129). Regarding enforcement, the "Law on Enforcement Proceedings" defines the debtor's rights.
The Process Step-by-Step
1. Case Review: The lawyer checks the contract, payment history, and statute of limitations. 2. Defense Preparation: If a lawsuit is filed, a substantiated reply is prepared. 3. Motion: Requesting reduction of penalties or application of the statute of limitations. 4. Court Hearing: The lawyer defends your interests at the trial. 5. Negotiation: Parallel negotiations with the bank for a settlement (e.g., paying principal without fines).
Why Choose a Specialist on Legal.ge?
Banks have strong legal departments. Fighting them alone is difficult. On Legal.ge, you will find lawyers specializing in banking and credit disputes who know how to protect consumers from unfair treatment. Qualified assistance often means saving thousands of Lari.
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