Enforcement Against Non-Registrable Movable Property
When a debtor fails to perform voluntarily, the creditor's claim often targets movable items — equipment, appliances, inventory, vehicles or securities that are not registered in a public registry. Enforcement against such property begins with the attachment (seizure) regulated by Article 40 of the Georgian Law on Enforcement Proceedings: attachment of movable property means describing the debtor's property, declaring a prohibition on the owner disposing of it — alienating it in any form, pledging it, or concluding lease or rental contracts over it — and/or transferring the property for safekeeping. The enforcement officer records the attached items in the act of description and attachment. For non-registrable property this document is the primary fixation of the attachment, since no public-registry entry exists. After attachment the debtor can no longer sell or pledge the item: the law directly provides that any transaction concluded over attached movable property after the attachment is void.
The Object of Attachment — What Can Be Seized
Article 44 establishes the general rule: all items of the debtor are subject to attachment, except property listed by this law; items found with the debtor are presumed to belong to him. The enforcement officer therefore describes and attaches movable property located during enforcement, unless it falls within the statutorily protected list; the scope of exceptions is determined by other provisions of the same law, and property within that list is not subject to attachment.
The rights of third parties are also protected: if, during attachment, a third person declares a right over the property, the item is still entered in the act with an appropriate note. The enforcement officer simultaneously explains to that person the right to apply to court with a claim for release of the property from attachment; where the third person presents a document confirming ownership, the enforcement officer, with the creditor's consent, is entitled to exclude the property from the act.
The Act of Description and Attachment
Article 48 sets out the mandatory contents of the act, which is especially important for non-registrable property: the time and place of its compilation; the name of the enforcement bureau in whose territory enforcement takes place, the enforcement officer's name, and the persons present; the name of the court and the decision being enforced, or the title of the other enforcement document and the issuing authority; the names of the creditor and the debtor; the designation of each item and its distinguishing features — quantity, size, weight, wear; separate valuation of each item and the value of the whole property, where the officer can determine prices; if items or premises were sealed — which ones and the seal numbers; the name and address of the person to whom the property was transferred for safekeeping; an explanation of the procedure for appealing the officer's actions and of liability for squandering, alienating or concealing the property; and the notes and statements of the creditor and the debtor with the officer's explanations.
The act is signed by the enforcement officer, the custodian of the property, the creditor, the debtor and other persons present at the attachment. The act must also list, with indication of value, the items left with the debtor and the debtor's other property held in common ownership with other persons that was not attached. Parties rely on these records at the subsequent stages — valuation and realization.
Safekeeping and Sealing of Attached Property
Attached money is deposited by the enforcement officer immediately into the deposit account of the National Bureau of Enforcement, while attached securities and valuables are taken and kept in a specially designated, guarded room. This extends to other items where there is a threat of their interference. If attached movable items remain with the debtor or are entrusted to another person for safekeeping, the attachment may be effected by sealing; where necessary, at the creditor's request or on its own initiative, the enforcement officer may seal the described items, noting this in the act.
The liability rule is important: any disposal of attached property by the debtor or the custodian entails liability in the manner provided by the criminal legislation of Georgia — selling or concealing an attached item carries criminal-law risk. Regarding agricultural produce, the law further provides that fruit not yet separated from the land may be attached until enforcement against immovable property has occurred, yet attachment may not take place earlier than one month before the harvest.
Frequently Asked Questions
Can all of the debtor's movable items be attached?
Under Article 44 all items of the debtor are subject to attachment except property listed by the law; items found with the debtor are presumed his. The exceptions are defined by other provisions of the same law, and property within them is not subject to attachment.
What must the attachment act contain?
Under Article 48 the act records the time and place, the bureau and officer, the decision being enforced, the parties, each item's designation and distinguishing features, separate valuations, sealing data, the custodian, explanations of appeal and liability, and the parties' notes. It is signed by the officer, custodian, creditor, debtor and those present.
What if a third person claims a right over the item?
The item is still entered in the act with a note; the officer explains the right to apply to court for release from attachment, and where an ownership document is presented the property may, with the creditor's consent, be excluded from the act.
Where are attached money and valuables kept?
Attached money is immediately deposited into the National Bureau of Enforcement's deposit account; securities and valuables are kept in a specially designated guarded room. Other items are covered where interference is threatened, and sealing is possible.
How We Help on Legal.ge
On Legal.ge you can choose an enforcement-law specialist who will help you verify the correctness of the description and attachment act for non-registrable movable property, protect third-party rights, resolve safekeeping and sealing issues, and appeal the enforcement officer's actions. Protect your interests in the enforcement process with the lawyers of Legal.ge.