# Debt recovery in Georgia — loans, IOUs, enforcement A debt can be recovered through the courts or — if the contract was certified by a notary — even without going to court. We assess your documents, choose the fastest route and make sure the debtor doesn't dispose of their assets. - Confidential - Georgian · English · Russian - Free first consultation - Courts of all instances The limitation period for a claim to repay a loan is 3 years (Civil Code, Article 129) — usually from the day the money was due. So don't wait: once it has passed, the debtor can argue that the claim is time-barred. The law doesn't always require a loan agreement to be in writing, but in a dispute documents decide: the contract, an IOU, bank transfers, messages. The effective annual interest rate on a loan must not exceed 50% — this applies to every loan, including between private individuals. ## Recovering a debt step by step - We gather evidence — the contract, IOU, transfers, messages, witnesses. - We send the debtor a written demand with a deadline — often this alone is enough. - If they don't pay, we file a lawsuit. The court fee is 3% of the amount claimed, but at least 100 GEL. - Together with the lawsuit we can ask the court to freeze the debtor's property or account so it isn't disposed of before the case is decided. - After the judgment, the National Bureau of Enforcement collects the debt and the debtor is entered into the debtors register. ## When you can skip the court If the loan agreement was certified by a notary and the parties agreed in it to the issue of a writ of execution, once the debt is due the notary issues the writ (Law on Notaries, Article 38) and enforcement starts without a court case. That is why we recommend signing larger loans before a notary. A claim based on a promissory note can be heard by the court under a simplified procedure — only documents and the parties' explanations are used as evidence. ## Our services - Assessing the chances of recovery and the evidence - Demand letter and negotiation with the debtor - Lawsuit to recover the debt with interest and penalties - Asking the court to freeze the debtor's property and accounts - Obtaining a writ of execution from a notary - Managing the enforcement process ## Questions & answers ### I lent money without an IOU — can I get it back? Possibly. Evidence can be a bank transfer, messages, an audio recording or a witness. The sooner you contact us, the more evidence we can preserve. ### How long do I have to claim the debt? The limitation period is 3 years — usually from the repayment date. After that the debtor can rely on the limitation period and the court will reject the claim. ### How much does a lawsuit cost? The court fee is 3% of the amount claimed, but at least 100 GEL. If you win, the losing party usually reimburses the court costs. ### The debtor has no assets — what happens? The judgment goes to enforcement and the debtor is entered into the debtors register: they can't register new property or a car without the enforcement bureau finding out. Money can also be deducted from their salary. ## Legal basis - [Civil Code of Georgia](https://matsne.gov.ge/ka/document/view/31702) - [Civil Procedure Code of Georgia](https://matsne.gov.ge/ka/document/view/29962) - [Law on Notaries](https://matsne.gov.ge/ka/document/view/90928) - [Law on Enforcement Proceedings](https://matsne.gov.ge/ka/document/view/18442) Official texts (in Georgian) — Legislative Herald of Georgia, matsne.gov.ge. ## Related topics - [#Court cases](https://mmlaw.ge/en/civil-litigation-lawyer/) - [#Property](https://mmlaw.ge/en/real-estate-lawyer/) - - [Civil litigation lawyer](https://mmlaw.ge/en/civil-litigation-lawyer/) - - [Mortgage](https://mmlaw.ge/en/mortgage-georgia/) - - [Who is a judge? Courts and judges in Georgia](https://mmlaw.ge/en/blog/who-is-a-judge-in-georgia/) - - [Disputes with developers · For foreigners](https://mmlaw.ge/en/foreigners/disputes-with-developers/) - - [Time-barred loans in Georgia: limitation period and defence](https://mmlaw.ge/en/time-barred-loans/) - - [Removing a seizure on bank accounts and property](https://mmlaw.ge/en/removing-seizure-on-account/) - - [Compensation for moral damage](https://mmlaw.ge/en/moral-damage-compensation/) - - [Debtors' register in Georgia: checking and removal](https://mmlaw.ge/en/debtors-register/) Practice areas ## Other practice areas - [Criminal defense](https://mmlaw.ge/en/criminal-defense-lawyer/) — Defense at every stage — from investigation and arrest to trial and appeal. - [Drug offences](https://mmlaw.ge/en/drug-crime-lawyer/) — Defence in cases of buying, possessing, selling and importing drugs — and against fines and administrative detention. - [Cybercrime](https://mmlaw.ge/en/cybercrime-lawyer/) — Defense in cybercrime cases and help for victims of online fraud, hacked accounts and blackmail. - [Property crimes](https://mmlaw.ge/en/property-crime-lawyer/) — Defence in theft, robbery, fraud, extortion, embezzlement and misappropriation cases. - [Economic crimes](https://mmlaw.ge/en/economic-crime-lawyer/) — Defence against tax evasion, money laundering, customs and other economic charges. - [Corruption and official crimes](https://mmlaw.ge/en/corruption-crime-lawyer/) — Defence in bribery, trading in influence and abuse of official power cases. - [Violent crimes](https://mmlaw.ge/en/violent-crime-lawyer/) — Defence in assault, bodily injury, threats and homicide cases — including self-defence. - [Juvenile justice](https://mmlaw.ge/en/juvenile-justice-lawyer/) — Specialised representation of minors, focused on their rights and future. - [Civil litigation](https://mmlaw.ge/en/civil-litigation-lawyer/) — Contract, property and damages disputes — negotiated or argued in court. - [Administrative law](https://mmlaw.ge/en/administrative-law-lawyer/) — Challenging decisions of public bodies, fines, permits and licences. - [Labor disputes](https://mmlaw.ge/en/employment-lawyer/) — Unlawful dismissal, unpaid wages and employment contracts — for employees and employers. - [Corporate law](https://mmlaw.ge/en/corporate-lawyer/) — Company formation, contracts, compliance and shareholder matters. - [Real estate](https://mmlaw.ge/en/real-estate-lawyer/) — Due diligence, purchase agreements, registration and property disputes. - [Family law](https://mmlaw.ge/en/family-lawyer/) — Divorce, custody, alimony and division of property — handled with discretion. - [Inheritance](https://mmlaw.ge/en/inheritance-lawyer/) — Accepting an inheritance, the certificate of inheritance, wills and disputes between heirs. - [Intellectual property](https://mmlaw.ge/en/intellectual-property-lawyer/) — Trademarks, copyright and protection of your creative and business assets. --- Source: https://mmlaw.ge/en/debt-recovery-georgia/ · MMLAW · +995 551 00 43 00 · info@mmlaw.ge