Debt Recovery Between Businesses in Georgia
Business debt recovery requires proof of the obligation, performance, amount and due date; the correct debtor and forum; a strategy for security or interim protection; and a realistic route from judgment or settlement to identifiable assets.
Why this issue changes business decisions
The creditor should build one reconciled file. Contract, orders, delivery or acceptance, invoices, credit notes, payments, complaints, notices and debtor acknowledgements must support the same amount and story. Claims that change between demand and filing lose credibility and may create avoidable disputes.
Collectability affects every stage. A debtor with trading assets and a genuine short-term problem may justify a secured payment plan. A debtor with multiple creditors, transfers or insolvency indicators requires faster investigation and a different cost decision.
What the official Georgian sources show
The Civil Code provides the substantive contract and obligation framework, while court claims and supporting evidence are governed by the Civil Procedure Code. Contractual arbitration clauses may require a different forum. Official source
The Enforcement Proceedings Law governs enforcement of qualifying court, arbitration and other enforceable acts. Its process can include initiation, attachment, sale and distribution, but the practical result depends on assets, priority and debtor status. Official source
Insolvency changes individual recovery strategy. Creditors should monitor formal proceedings, claim deadlines, security and voting or plan rights under the rehabilitation and collective-satisfaction framework. Official source
Decisions to record before the company acts
Reconcile principal, interest, penalty, currency, credits and payments before demand.
Verify debtor entity, registry status, forum, limitation and known assets.
Make settlement conditional on acknowledgement, clear dates, security and default consequences.
Move promptly from enforceable outcome to asset-focused enforcement.
Issues counsel should connect
Claim proof
Reconcile contract, performance, invoices, payments, credits, notices and admissions.
Debtor review
Verify legal status, authority, ownership changes, insolvency indicators and known assets.
Demand strategy
Set amount, legal basis, deadline, reservation of rights and realistic settlement options.
Proceedings
Choose court, arbitration or other available route and prepare the evidence and remedies.
Payment security
Negotiate acknowledgement, schedule, guarantee, pledge or other protection where appropriate.
Enforcement
Obtain the required writ or instrument and coordinate asset-focused enforcement steps.
A practical sequence for this matter
- 1
Prepare a clean debt ledger and evidence file.
- 2
Verify forum, limitation, debtor status, assets and security.
- 3
Issue the selected demand or protective application.
- 4
Negotiate secured payment or pursue the claim to an enforceable outcome.
- 5
Open and monitor enforcement, payments, asset changes and insolvency developments.
Documents and evidence
- contract, guarantee or loan instrument
- orders and performance evidence
- invoices and account statement
- payment, credit and set-off records
- acceptance, complaint and correspondence
- default notices and debtor acknowledgements
- registry and asset information
- judgment, award, writ or enforceable settlement
Risks to test
- wrong debtor entity is pursued
- claim amount cannot be reconciled
- limitation or notice terms are missed
- settlement is unsecured
- debtor disposes of assets during delay
- enforcement costs exceed realistic recovery
Official public sources used
This publication cites only legislation, registries and regulators. It does not rely on other law firms or competitor commentary as authority.