Introduction: What is a Collection Order (Incasso)
Filing a collection order (incasso) against a debtor's bank accounts is one of the fastest, most automated, and effective instruments for the forced enforcement of financial obligations. Unlike a simple account freeze, which merely blocks the funds and prohibits the owner from using them, a collection order is an active demand to the bank. It obliges the commercial bank to automatically deduct any incoming funds from the debtor's account the moment they are deposited, without requiring additional consent from the owner, and transfer them to the enforcement bureau's deposit account to satisfy the creditor's claim. In the modern digital era, where the vast majority of economic circulation passes through the banking sector, a collection order is the most potent lever for recovering debts from business companies and employed individuals.
The legal service for filing a collection order begins with initiating the enforcement process and covers electronic interaction with the banking sector. The lawyer applies to the enforcer on behalf of the creditor, and the enforcer sends the collection order to all commercial banks operating in Georgia through a special electronic system. The service includes continuous monitoring of the process to determine in which bank the debtor has an active account and where transactions are occurring. The service also covers managing cases where the debtor holds accounts in foreign currencies; in such times, the currency is converted, and the equivalent amount is deducted in the national currency. Lawyers verify the correctness and timeliness of the banks' execution of the collection order to ensure the creditor does not suffer financial loss due to a bank's error or delay.
Common Practical Scenarios
Collection orders are widely used in both private and public legal disputes. The most common scenario involves business (B2B) disputes, where one company fails to pay another for services or supplied goods. After winning in court, an incasso is placed on the debtor company's accounts. Because a business cannot operate without bank transfers, any incoming transaction (payments received from customers) is automatically directed to the creditor. Another frequent scenario is the recovery of unpaid taxes by the state (Revenue Service), for which collection orders are also used. For individuals, an incasso is effective when the debtor is officially employed and receives a monthly salary or rental income on their bank account. In such cases, the incasso automatically deducts the amount necessary to cover the debt as soon as the income is deposited.