Abstract:

The present paper examines the legal and practical aspects of enforcement mediation in the compulsory enforcement of mortgage-secured claims. The issue is relevant in Georgia, where mortgage-secured credit relations are widespread and consequently, social and legal risks at the enforcement stage are substantial. Enforcement mediation represents a promising legislative model within the Georgian legal framework, the legal nature and effectiveness of which have not yet been comprehensively studied.

The purpose of the paper is to evaluate the effectiveness of the enforcement mediation mechanism envisaged by the Draft Enforcement Code, as well as to identify potential legal shortcomings and practical challenges through an analysis of the existing legislation and the proposed reform. The research employs doctrinal, comparative legal, and qualitative research methods, based on the analysis of Georgian legislation, judicial and enforcement practice, foreign legal models, international recommendations, and semi-structured interviews with enforcement practitioners.

The findings show that, despite the absence of a special legislative framework governing enforcement mediation, settlement between the parties is actively used in practice; however, the process lacks unified legal standards and effective procedural mechanisms. The paper focuses on  the balance of interests between creditor and debtor, the principle of confidentiality, and the relationship between confidentiality and the enforceability of settlements reached through mediation. Ultimately, the paper proposes legal recommendations for the effective implementation of enforcement mediation, which may contribute to the improvement of legislative regulation and to the development of enforcement practice.

Keywords:

Debtor, Creditor, Party settlement, Confidentiality, Enforceability, Balance of interests

Full PDF:

PDF