If enforcement proceedings have already begun and paying the whole amount at once is impossible, it matters to understand how the law actually works: the law on enforcement proceedings does not provide a single, standalone “application for rescheduling” — temporary regulation of payment is achieved by combining several lawful instruments. We analyse those instruments, prepare the corresponding documents and negotiate with the creditor on Legal.ge.
What Payment Rescheduling Means in Enforcement Proceedings
In practice, rescheduling means regulating enforcement so that no new seizures are imposed, existing measures are temporarily paused, and the debt is covered under an agreed schedule. The law offers several routes for this: a settlement between the parties, whose approval is decided by the court; an application to the court for postponement of enforcement or for distribution of the obligation into instalments; suspension of enforcement by the National Bureau of Enforcement; postponement of a measure in a special situation; and, as a last resort, termination of enforcement on statutory grounds. Selecting and sequencing those routes is precisely our work.
Settlement and Negotiated Restructuring
The creditor and the debtor have the right to settle. On settlement, the parties hand the written agreement to the Bureau, which within 3 days sends it to the court in whose territory the enforcement is proceeding, for approval. A settlement between creditor and debtor is a ground for termination of enforcement: every measure taken for enforcement then becomes void — but note that renewal of proceedings on the same decision is not allowed. Within the agreement it is also possible to arrange other-type realization of the seized property: on the application of both parties, before the auction is publicly announced, the Bureau may determine that the property will be realized differently from the way the law prescribes.
The Court Route — Postponement and Instalments
The creditor and the debtor may apply to the court regarding postponement of enforcement, distribution of the obligation into instalments, or other actions connected with enforcement. In addition, the parties may appeal an enforcement officer’s act to the chairperson of the Bureau — within 15 calendar days of the act — or directly to the court within 1 month; the chairperson’s decision is appealed within 1 month of its delivery. The court may also suspend enforcement in the cases provided by law — for example, during liquidation of a debtor legal person until a successor is determined, or while a lawsuit for release of property from seizure is being examined, in the respective part and until a decision is adopted.
Suspension of Enforcement and Protection of the Debtor
The National Bureau of Enforcement suspends enforcement at the creditor’s request — once, for up to 3 months; after that period the enforcement writ is returned to the creditor unless continuation is requested. The Bureau also suspends enforcement on the death of a party, on distribution of the obligation into instalments and in other cases established by law. A separate protection exists for the debtor: in a special situation — illness, the death of a family member or another emergency — the Bureau may postpone a measure for up to 6 months and may extend that period once by up to 6 further months; if the situation does not change, the court may annul the measure, prohibit it or temporarily suspend it for up to 3 months.
Proportionality of Seizure and Grounds for Termination
A seizure is imposed on a claim only if legislation does not restrict its transfer or seizure; future claims may also be seized if they are clearly determinable — so the scope of the seizure can be contested, and we work in that direction too. As for termination: enforcement terminates if the creditor renounces enforcement, the parties settle, the decision is annulled or the limitation period has expired. In a monetary case the proceedings terminate when 10 years have passed since their commencement, except for alimony, employment-related and damage-compensation cases; for an administrative fine — when 5 years have passed.
Frequently Asked Questions
Answers to frequent questions about regulating payment.
Does a standalone “application for rescheduling” exist?
No — the law does not provide such a separate application. The lawful routes for regulating payment are: a settlement approved by the court; an application to the court for postponement or instalments; suspension of enforcement or postponement of a measure. We choose the route that fits your situation.
For how long can enforcement be suspended?
At the creditor’s request — once, for up to 3 months. In a special situation the Bureau postpones a measure for up to 6 months and may extend it once by up to 6 further months; the court may suspend a measure for up to 3 months.
What is the effect of a settlement with the creditor?
A settlement is a ground for terminating enforcement: every measure taken for enforcement becomes void. The written agreement is handed to the Bureau, which sends it to the court within 3 days for approval.
Can seized property be sold in another way?
Yes — by agreement of the creditor and the debtor, on the parties’ application, before the auction is publicly announced, the Bureau may determine realization of the property differently from the way prescribed by law.
When does enforcement terminate with the passage of time?
In a monetary case — when 10 years have passed since the start of the proceedings, except for the exceptional cases provided by law; for an administrative fine — when 5 years have passed.
How We Help on Legal.ge
We start with an audit of the enforcement case: we establish the amount of the claim, the existing seizures and the deadlines that work in your favour. We then prepare the settlement agreement, negotiate with the creditor, apply to the court for postponement or instalments and, where necessary, use the Bureau’s mechanisms of suspension and postponement. Contact us for a consultation on Legal.ge.