What is the basis of the order of enforcement?

The time of registration of the seizure on the property — hourly and minutely. Realization is carried out by the executor who registered the seizure first.

Where is a seizure registered?

Vehicles — with the organ of the Ministry of Internal Affairs; aircraft and sea vessels — in the corresponding registries; securities — with the registry operator; other property — in the public registry.

How does a seizure on a salary work?

The Bureau issues a seizure order and hands it to the assigned person; thereafter the relevant amounts are credited to the creditor, and the seizure extends to future amounts as well.

What happens upon suspension of the realization?

Enforcement is continued by the executor whose seizure is registered next in order, and the next creditor's executor is immediately notified of the suspension.

Distribution of Auction Proceeds Among Creditors in Georgia

The Essence of the Service: Who Gets Paid First

When the property of one debtor is simultaneously pursued by several creditors, the distribution of the proceeds of realization depends on the rules of priority of enforcement. In Georgia this field is regulated by Article 54 (multiple seizure and the priority of enforcement of monetary claims), Article 56 (the distribution order of seizure on claims) and Article 57 (the effects of seizure) of the Law on Enforcement Proceedings. It follows from these norms that the winner is often not the holder of the largest claim, but the creditor who registered the seizure in time or secured precedence in the order of priority.

This page explains how priority is determined in cases conducted by different executors, what significance the time of registration of the seizure carries, how seizure is placed on claims — including salaries — and what rights a creditor has in a dispute.

Multiple Seizure and the Order of Enforcement

Under Article 54 of the law, property may simultaneously be seized for the benefit of multiple creditors, and property already under seizure may subsequently be seized for the benefit of another (subsequent) creditor. If the first seizure on the property was placed by another executor, that executor must be notified of the registration of the seizure.

Where monetary claims under several enforcement sheets against one debtor are enforced by different executors, the realization by auction or otherwise of the same property of the debtor is carried out by the executor who first registered the seizure in the corresponding registry: for weapons and vehicles — with the corresponding organ of the Ministry of Internal Affairs; for a civil aircraft — in the state registry of civil aircraft; for an ultralight aircraft — in the registry of ultralight aircraft; for a sea vessel — in the state registry of ships of Georgia; for a security — with the corresponding operator of the registry of securities; and for other property — in the public registry. The order of enforcement is determined by the time of registration of the seizure on the property — hourly and minutely. In the compulsory enforcement of an order for the payment of arrears, the seizure is deemed to have been placed by the executor from the moment of the commencement of the enforcement proceedings.

The registration of a seizure takes place directly on the basis of the document (act) confirming the placing of the seizure, its electronic copy, or an application of the National Bureau of Enforcement. If the realization of the property is suspended on grounds provided for by law, the enforcement against that property for the benefit of the next creditor is continued by the executor whose seizure is registered next in order, and the executor of the next creditor is immediately notified of the suspension.