Garnishment proceedings in Georgia — the attachment and realisation of a debtor's movable property — are governed by the Georgian Law on Enforcement Proceedings. The law defines what seizure means, which property is subject to it and which is protected, how the property is described and valued, what the inventory-and-seizure act must contain, and how the proceeds reach the creditor, on the basis of Articles 40, 44, 45, 47, 48 and 49.
What seizure of movable property means
Under the first part of Article 40, seizure of movable property means the description of the debtor's property, the declaration of a prohibition on the owner disposing of it — alienation in any form, pledging, or lease and rental contracts over it — and/or the transfer of the property for safekeeping, recorded by the enforcement officer in the act of description and seizure.
Once the seizure is imposed, any transaction over the seized movable property is void. Seized money is immediately deposited into the Bureau's deposit account, while securities and valuables are kept in a specially allocated, guarded room. Where items remain with the debtor or a custodian, the seizure may be effected by sealing, and attempted disposal triggers criminal liability. Fruit not yet gathered from the land may be seized until enforcement against immovable property has occurred, but not earlier than one month before the harvest. Where a third person asserts a right over the item, it is still entered into the act with a note; on presentation of an ownership document, the officer, with the creditor's consent, removes it from the act.
The object of seizure and protected property
Under Article 44, all items of the debtor are subject to seizure except the property listed in Article 45. Article 45 defines the property against which enforcement is not allowed: personal-use and household items necessary for the debtor's professional activity, life and household; four weeks' supply of food, fuel and lighting means for the debtor, his family and co-residents, or the money to buy them; small livestock in limited numbers and one milch cow, or at the debtor's choice two pigs, sheep or goats, if needed to feed the household, plus a three-month supply of animal feed and straw or the money for it.
Also protected are farm implements, livestock, fertiliser and products needed to sustain a farm until the next harvest; items needed for persons earning income by their work; targeted state assistance; and property of a family member from the database of socially vulnerable families whose indicator is below the government threshold, except property securing the claim. The subsistence minimum is set by separate legislation; exemption disputes are examined in court.
Valuation of the seized property
Article 47 provides two valuation routes. Where the market value can be determined at the description stage, it is recorded directly in the act; otherwise the property is valued after registration of the seizure by the National Enforcement Bureau or, on its instruction, by another competent person. In tax-debt enforcement, repeated valuation is not mandatory where the property was valued within 1 year before the proceedings began. A party may submit an expert conclusion on the market value covering a valuation made within 6 months before commencement; where both parties submit conclusions, the Bureau relies on one of them.
Content of the description-and-seizure act
Article 48 prescribes the act's particulars: time and place of compilation; the bureau's and officer's names and persons present; the court and the decision enforced, or the enforcement document and its issuer; the names of creditor and debtor; each item with its distinguishing features — quantity, size, weight, wear and other; separate valuation of each item and of the whole; seal numbers where things were sealed; the custodian's name and address; the record that appeal rights and the custodian's duties and liability were explained; and the parties' notes and statements.
The act must also list, with values, the items left with the debtor and the debtor's property held in common ownership with others that was not seized. It is signed by the enforcement officer, the custodian, the creditor, the debtor and other persons present, which makes it evidence in later disputes.
Realisation of the seized property
Under Article 49, sums seized or paid by the debtor are transferred by the National Enforcement Bureau to the creditor after deduction of the fee and enforcement costs; other items are sold publicly at auction. Before the auction is announced, the Bureau may let the debtor realise the property himself under its control, but only if the fee, the enforcement costs and the creditor's claims are covered. The Bureau may also remove the seized item from the debtor's possession.
This chain — description, valuation, act, auction, payment — is one documented procedure in which the parties' rights are guarded at every stage.
Frequently Asked Questions
Below we gather the questions most often raised by creditors and debtors about the seizure procedure.
Which property cannot be taken into seizure?
The property protected by Article 45: items necessary for life and profession, four weeks' food, fuel and lighting, limited livestock, targeted state assistance and other listed categories.
Can a seized item be sold by the parties?
No. After the seizure, transactions of alienation, pledge, lease or rental over the item are void; any attempted disposal triggers statutory liability.
Who values the property?
Where possible, the market value is recorded in the act at the description stage; otherwise the Bureau values the property after registration of the seizure.
How does the creditor receive the money?
Amounts paid or obtained through realisation are transferred to the creditor after deduction of the fee and enforcement costs; items are sold at a public auction.
How We Help on Legal.ge
The Legal.ge team assists creditors and debtors at every stage of seizure: we assess which property is subject to it, investigate the debtor's financial position and verify the act and the valuation.
If your property has been seized or you intend to commence enforcement, write to us on Legal.ge — we will build the right strategy and ensure the procedure runs lawfully.