Introduction: Interim Measures and Claim Security
Freezing (placing a seizure on) bank accounts represents one of the most effective and immediate measures for securing a claim. Unlike the seizure during the forced enforcement stage, a seizure as an interim measure is executed before the commencement of a court dispute or while the dispute is ongoing. When a plaintiff (creditor) has a substantiated assumption that the defendant (debtor) will hide funds or empty their bank accounts before the conclusion of the court process, they apply to the court requesting the freezing of the accounts. Based on the judge's ruling, the funds on the defendant's accounts are frozen within the limits of the disputed amount (the claimed sum). This mechanism protects the plaintiff from the risk that, after winning a years-long court battle, the defendant will have no money left to execute the decision. On the other hand, unfreezing (releasing) accounts from an illegal or disproportionate seizure is vitally important for the defendant to prevent the paralyzation of their business or daily life.
What the Freezing/Unfreezing Service Entails
The legal service covers two opposing processes: protecting the plaintiff's interests (freezing accounts) and defending the defendant's rights (unfreezing accounts). In the first case, the lawyer prepares a substantiated motion for the court, proving that without a freeze, the execution of the decision will become impossible. Upon receiving the court's ruling, the lawyer monitors its immediate execution through the banks. In the second case (from the debtor's perspective), the service includes appealing the court's ruling to demand the lifting of the freeze. The lawyer proves that the freeze was applied in violation of the law (e.g., on social or salary income) or that it is disproportionate. The service also anticipates requesting a modification of the interim measure—for example, replacing the freeze on bank accounts with a freeze on real estate, so the company can continue financial operations and avoid bankruptcy.
Common Practical Scenarios
In practice, freezing bank accounts is most frequently used during large commercial (B2B) disputes, tax disputes, and the non-fulfillment of financial obligations between individuals. When one company sues another for breaching a million-dollar contract, the very first step is requesting a freeze on the defendant's bank accounts, as the company can transfer the funds offshore at any minute. During tax disputes, the Revenue Service blocks the taxpayer's accounts (so-called incasso and freeze) before the dispute even begins to secure the budget's interests. For individuals, accounts are frozen during loan defaults or alimony disputes. A frequent scenario is when a defendant company's accounts are frozen, leading to unpaid employee salaries and business suspension; in such times, the lawyer immediately applies to the court to lift the freeze or substitute it with other property.
Georgian Legislation and Procedural Rules
The Civil Procedure Code of Georgia details the measures for securing a claim. According to the law, the judge reviews the request for a freeze within 24 hours, without an oral hearing (without the defendant's presence), to maintain the element of surprise. This means the defendant learns about the frozen accounts post-factum, when the bank blocks their cards. However, the law also protects the defendant: if it turns out the lawsuit was groundless and the freeze caused damage to the defendant, the plaintiff is obliged to compensate for this damage. Furthermore, freezing an amount exceeding the subject of the dispute is prohibited. If the dispute is over 10,000 GEL, and there is 50,000 GEL in the account, only 10,000 GEL should be frozen. The legislation also prohibits freezing state pensions, subsistence allowances, and other social payouts, which often becomes a subject of dispute if the bank mistakenly blocks the entire account.
Stages of Placing and Lifting a Freeze
The process of freezing accounts begins with the lawyer submitting a substantiated application (motion) to the court. As soon as the judge's ruling is issued, it is sent to the National Bureau of Enforcement, which uses an electronic system to freeze the defendant's accounts in all commercial banks. Regarding the lifting or modification (unfreezing) of the seizure, the defendant's lawyer submits a counter-motion to the court. They may rely on the fact that the freeze was placed on a salary account (presenting bank statements and an employer's certificate) or offer the court alternative security—for example, depositing the disputed amount into the court's deposit account, or presenting a bank guarantee and real estate. If alternative security is accepted, the judge immediately cancels the freeze on the bank accounts, allowing the company or individual to restore normal financial activities.
Challenges and Cases of Illegal Blocking
The biggest challenges in practice are technical and bureaucratic flaws. The electronic system often cannot distinguish the origin of the funds in the account, leading to the automatic blocking of social assistance, pensions, and alimony, which is prohibited by law. Citizens have to wait weeks and collect numerous certificates to unblock these funds. In the case of businesses, "over-freezing" is a problem: the judge freezes accounts within the debt amount, but due to bank synchronization issues, the disputed amount is frozen in multiple banks simultaneously (e.g., 10,000 GEL in three different banks instead of 10,000 GEL total). A qualified lawyer immediately intervenes in such situations, conducting instant communication with the enforcer and the banks to prevent the blocking of excess funds and protect the client's interests.
Find Qualified Assistance on legal.ge
Freezing or unfreezing bank accounts requires urgent legal response, as losing time directly leads to financial collapse. Whether you want to protect your money from being hidden or, conversely, you want to free your business and personal accounts from an illegal freeze, you will need the help of top professionals. The legal.ge platform gives you the unique opportunity to easily and quickly find lawyers and advocates specializing in interim measures and banking-enforcement disputes. In our directory, you can review lawyers' profiles, their experience, and contact the specialist who will promptly draft a motion, protect your interests in court, and ensure the restoration of your financial freedom.
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