1. Is it possible to direct enforcement to debtor's other assets, providing the opportunity does not fully cover creditor's claim?
An assignment, the securement of which is a mortgage, is considered to be fulfilled even in case the funds gathered as a result of realization of mortgaged movable/immovable property aren't enough to meet the assignment secured by a mortgage, if there isn't any other consideration stipulated by law or by the parties.
2. How should a third party act when he/she has a right on movable items attached by an enforcement officer?
If third parties claim their right on a debtor's property that is being attached, it is still included in the census act and a relevant note is made. Simultaneously, a enforcement officer explains him/her the right - to apply to court with the suit to make the property attachment-free. If the third person presents the document certifying the owner's right on the property, a enforcement officer is authorized to cross out the property from census and attachment act, in case of the consent by an assigner. However, while conducting compulsory enforcement in favor of an unsecured creditor, if after attachment of a debtor's property but no later than issuing an order on realizing it at auction, a mortgagor asserts his/her right on the property and presents the NBE a copying for certifying a mortgagor right issued by the relevant, the NBE abolishes attachment of the property.
3. Is a enforcement officer authorized to direct enforcement on the property registered in Technical Registry Bureau?
A enforcement officer is authorized to direct enforcement on the property registered in Technical Registry Bureau.
4. Is it available to pay by instalments?
On its own initiative, NBE is authorized to ensure that a debtor pays the due by instalments within 12 months concerning the cases to be enforced in favor of state budget- while cases of other categories require a creditor's consent. In case the terms of instalments are violated, an enforcement proceeding will resume.
5. What is the deadline of informing a debtor about the beginning of enforcement?
A debtor is informed within 5 days.
6. What is the deadline for voluntary fulfilment of the decision?
The deadline for voluntary fulfilment of the decision totals 7 days. If the decision has to be enforced immediately, a debtor is sent a relevant notification to fulfil the decision instantly and voluntarily.
7. What are the principles for suspending enforcement proceeding?
1. The court is authorized to stop the enforcement proceeding:
a) If a debtor - a legal entity - has been liquidated and his/her substitute hasn't been identified yet, and in case the power interchange is allowed by the legal relations stipulated by law;
b) If a debtor is no longer physically capable - till his/her substitute has been appointed;
c) While lodging a complaint about the action of the authorized body (official) for discussing the case of administrative law violation - until the decision has been made;
d) While making a complaint about unattaching the property that has been targeted for payment, - in the part of enforcing the disputable property and prior to making the relevant desicion;
e) Prior to making the decision - while bringing in an action against the enforcement proceeding conducted on the basis of the purchaser's assignment stipulated by the Article 2 of the law;
f) In any other cases stipulated by the Georgian legislation.
2. NBE is authorized to stop the enforcement:
a) on the basis of an assigner's demand with no more than 3 months' term once only. After the deadline has expired, the enforcement paper is returned to the assigner, if he/she doesn't demand that the enforcement should proceed;
b) If the court is applied for providing the explanation of the decision to be enforced by NBE, with the term set for the court to make the decision within;
c) If a creditor or a debtor has died and the court hasn't identified the substitute yet and the debtor's property hasn't yet been delivered to the substitute;
d) If a debtor fulfils the obligation in instalments that is stipulated by the Article 184 of the law;
e) In relation to the discussion of the suit of the enforcement proceeding party according to the Article 183 of the law, by the NBE Chairman's decision
f) While setting the deadline for a debtor to pay the creditor's due in cases stipulated by Articles 4 and 41 of the Paragraph 25 - till the deadline expires;
g) In a special case - by the decision of the NBE Chairman according to the deadline set by the decision itself
8. What are the grounds for suspending enforcement proceeding?
Enforcement will be suspended in case:
a) creditor refuses to make a debtor pay the due;
b) creditor and debtor have made an arrangement;
c) after the death of a creditor or a debtor the demands and commitments identified by the decision won't be allowed to be delivered to the substitute of the dead;
d) decision that is the basis of the enforcement proceeding has been annulled;
e)deadline for compulsory enforcement of the decision has expired;
f) As a result of the amendments to the legislation, the decision is impossible to make;
g) creditor or a debtor has been liquidated and the power interchange isn't allowed by the legal relations stipulated by the court or a substitute doesn't exist;
h) owner of the immovable property identified by the Article 84 of the law presents the document to NBE claiming the legal ownership and use of the property, within the term stipulated by the law;
i) debtor against which the enforcement is conducted presents the document proving the legal ownership and use of the property, on the basis of the assignment of the purchaser of the property stipulated by the Article 2 of the law; the document should be presented till the end of the enforcement proceeding;
9. Who is authorized to issue an enforcement paper?
Common courts, adminsitrative bodies (officials), arbitration, the commission and the committee on restitution and compensation,notary, national regulatory independent bodies.
10. What enforcement activities are conducted by a enforcement officer during the quest of a debtor's property?
A enforcement officer may oblige a debtor to present a list of his/her property, also require that state bodies and banks provide information about the property, bank account and the funds transferred to the account. A enforcement officer is also authorized to get into a debtor's dwelling and check every single item while executing enforcement.
11. In case the funds raised by the auction exceed a creditor's assignment, how is the sum further targeted?
If the funds gathered as a result of an auction exceed a creditor's assignment and another enforcement paper has been registered after the order issued on announcing a compulsory auction, the rest of the funds aren't returned to a debtor and they are attached by a enforcement officer in favor of another creditor; in other case, the sum is returned to a debtor.
12. Is a debtor obliged to provide a enforcement officer with the information about his/her property? What if inaccurate or incomplete data is provided?
A debtor is obliged to present the list of the property within 5 days from the NBE demand. If he/she refuses to do so or refuses to give a written guarantee, or presents inaccurate information on purpose, he/she will be charged according to the the Georgian legislation (Criminal Code of Georgia - Article 3771. Not presenting the property list to NBE.
13. What is the deadline for enforcing the assignment after presenting the enforcement paper?
The specific term for enforcement isn't stipulated by law.
14. What type of property isn't bound to payment?
The following types of property aren't bound to payment:
a) Items of private use that are necessary for a debtor for his/her work activities, everyday life and household needs.
b) Food, fuel and lighting facilities sufficient for 4 weeks for a debtor, his/her family and persons residing together with him/her. In case there are no such supplies for the given time period and their purchase is impossible by any other way, then the necessary sums are to be allocated;
c) Sheep and goats with limited amount, a cow, or two pigs, sheep or goats according to a debtor choice if they are compulsory for feeding a debtor, the family or persons residing together with him/her; also the stock of cattle food sufficient for three months; in case there is no such supply and the purchase is impossible by any other way, the due funds have to be allocated for the goal;
d) Persons working on land have right to use the tools they need, maintain the necessary live-stock, manure and agricultural products, as far as they are compulsory for living or until reaping the next harvest or for further conduction of agricultural activities;
e) For persons earning a living by working physically or mentally or by any other type of work, items necessary for such activities.
f) Property of the member of a family registered in the united database of socially vulnerable families, the social-economic index of which is lower than the limit set by the Georgian government. The property excludes the part of it used for the means of meeting the requirement.
15. Does a debtor have a right to require that the enforcement activity should be postponed via an application?
while executing a right granted by the Article 4 of Paragraph 17 of Georgia's Law on Enforcement Proceedings, also while conducting actions stipulated by Articles 83, 84, 88 and 901 of the Law, in case the situation faced on the enforcement scene (death, illness or any kind of emergency related to a debtor or a member of the family) doesn't meet the general moral principles and norms. On the basis of the assignment of a debtor NBE is authorized to put off any of the activities of compulsory enforcement on 6 months' term at most. NBE is authorized to extend the deadline for the next 6 months once only.
In case the factual situation doesn't change after the deadline set by the Article 1 of the Paragraph has expired, the court has a right to fully or partially abolish the compulsory enforcement on the basis of a debtor's application, forbid or temporarily stop any of the activities on 3 months' term at most.
16. What is the deadline for appealing against the activity of a enforcement officer?
Appeal against a enforcement officer's activity is directed to the NBE Chairperson within 15 calendar days from the activity or directly at court within a month's time from the activity.
17. Does amnesty refer to sub-Article "A" of Part 4 of Article 130 (avoiding to pay a fare while travelling) of Georgia's code of Administrative Law violation and what is the amnesty period for that?
Georgia's law on rescinding administrative penalties took effect on 26 October 2010. According to the Law, amnesty was granted for those who had been fined for traveling without a ticket before 1 August 2010 and the resolution about the administrative penalties hadn't been executed for them before the Law took effect. Amnesty implies to rescind the due, as well as the fine not having been paid.
18. What are the criteria of judging the presentation of an enforcement paper in NBE?
An enforcement paper is presented in NBE according to the location of a debtor or his/her property. It isn't mandatory to keep the territorial categorization in mind while applying to NBE to start the enforcement proceeding in case a creditor is an individual, a legal entity of private law or a group of persons without forming a legal entity.
19. Is it available to declare mistrust to a enforcement officer and how?
The issue ragarding the declaration of mistrust to a enforcement officer is discussed and resolved by the BE Head on the basis of a motivated application of an assigner, whereas the mistrust towards an NBE employee is solved by the NBE Chairperson in compliance with Article 2 of Paragraph 5 of the Law on Enforcement Proceedings of Georgia. The sides of the enforcement proceedings are informed about the decision. The decision of the BE Head can be appealed at court.
20. While conducting enforcement in favor of several mortgagors of the same queueing, how is the auction-gathered funds distributed amongst them?
If the funds aren't enough for meeting all the demands of the same queueing, the demands will be met proportionally for every single creditor.