Introduction and Service Overview
Initiating and conducting an enforcement process is associated with significant financial costs and strictly defined deadlines. It is critically important for both the creditor and the debtor to know in advance how much the administration of justice will cost them. Often, creditors begin enforcement proceedings without calculating preliminary fees, expertise, storage, or auction costs, which ultimately hinders the process. On the other hand, debtors are often charged inflated enforcement fees that do not comply with the law and can be appealed. The calculation of enforcement fees, costs, and deadlines is a highly specialized legal service aimed at clarifying the complete financial and temporal picture (budget and schedule) of the enforcement process in advance. This protects the parties from unexpected financial surprises and helps them make reasonable strategic decisions.
The calculation service is based on complex formulas found in legislation. For example, the tariffs of state and private execution officers differ, the fee depends on the percentage of the recovered amount, and the hourly or fixed costs of property evacuation, storage, and expertise must be considered. Added to this is the calculation of deadlines—when the stages of seizure, auction, and money transfer will occur. An experienced lawyer integrates all these variables into a unified system.
What the Calculation Service Covers
The service includes an in-depth analysis of the financial and procedural aspects of the case. First, the lawyer calculates the preliminary fee that the creditor must pay when submitting the writ of execution to the bureau or private execution officer. The main enforcement fee is calculated (which generally constitutes 7% of the satisfied claim, although minimum and maximum limits exist). The service also involves assessing hidden costs: how much an auditor's evaluation of the property will cost, transporting a car with a tow truck, the daily fee of an impound lot, or the forced opening of an apartment lock.
In terms of deadline calculation, the lawyer creates an estimated calendar for the process. They calculate how many days it takes to deliver the warning, when the period for voluntary compliance expires, when the first and repeated auctions will be scheduled, and within what timeframes the debtor has the right to appeal. The service concludes with delivering a detailed written report (budget and schedule plan) to the client, showing exactly how much net money the creditor will receive after deducting all costs, or how much the debtor will have to pay in total.
Common Situations and Practical Examples
The most common situation is when a creditor has a small claim (for example, 1,000 GEL) and demands that the debtor's car be sold at auction. The calculation reveals that the costs of searching for the car, towing, parking (for months), expertise, and auction collectively reach 1,500 GEL. That is, the enforcement cost exceeds the debt itself. In such a case, the lawyer advises the creditor to abandon the realization of the car and instead choose to gradually deduct funds from the debtor's salary (incasso), which is an almost free procedure.
Another example involves protecting the debtor's rights. The debtor paid the principal debt, but the execution officer imposed the enforcement fee at the maximum rate and added vague "expediting" costs. The lawyer performs an independent calculation of the costs, compares it to the tariffs established by law, and discovers that the execution officer overcharged. Based on this calculation, the debtor appeals the costs in court and saves significant funds.
The Georgian Legal Framework
The determination of enforcement costs and deadlines is regulated by the Law of Georgia on Enforcement Proceedings and the corresponding orders of the Minister of Justice (for example, the "Rule for Determining the Enforcement Service Fee"). The legislation distinguishes between the preliminary enforcement fee (paid by the creditor at the start of the case) and the main enforcement fee (imposed on the debtor and deducted from the recovered amount). The law explicitly defines minimum thresholds (for instance, the fee cannot be less than 50 GEL).
Regarding deadlines, the procedural and enforcement codes strictly determine the time for each action. For example, the period for voluntary compliance is 7 days, and the period for appealing a property valuation is also limited. The legislation provides that when calculating deadlines, weekends and public holidays are not counted in certain cases. The lawyer's role is to navigate this legislative labyrinth and make precise mathematical and legal calculations to protect the client's financial interests.
Step-by-Step Process
The calculation service begins with the client handing over the enforcement documentation (court decision, writ) and property information to the lawyer. In the first stage, the lawyer calculates the exact amount of the enforceable claim (principal plus court costs and interest). In the second stage, the preliminary fees are calculated depending on who will handle the case—the state bureau or a private execution officer.
In the third stage, the lawyer compiles a list of estimated additional costs: expertise, tow truck, locksmith, storage, police assistance. The fourth stage is dedicated to drafting a chronological schedule—counting the deadlines from the initiation of proceedings to the completion of the auction. In the fifth and final stage, a conclusive report is prepared, where the client sees a clear table: how much they will have to invest upfront, how much the execution officer will deduct, what the maximum and minimum timeframes are, and what net amount will ultimately remain for them.
Why legal.ge and the Need for a Lawyer
Enforcement costs often turn into unpleasant surprises. Execution officers rarely explain to creditors in advance the hidden costs associated with property realization. Due to incorrect calculations, a creditor might spend the money they waited years for entirely on enforcement bureaucracy, or a debtor might pay much more than the law requires.
The legal.ge platform gives you access to lawyers who possess not only legal but also enforcement-financial expertise. The professionals gathered in our directory will provide you with an accurate calculation, protect you from inflated costs, and show you the real picture. This will help you make the right strategic decision—whether it is worth putting a specific property up for auction or if it is better to find alternative methods. Protect your finances and plan your enforcement correctly with the help of legal.ge.
Updated: ...