Rehabilitation and collective satisfaction of creditors' claims in Georgia are governed by the Law of Georgia on Rehabilitation and the Collective Satisfaction of Creditors' Claims, which provides a comprehensive legal framework for the rehabilitation of debtors who are in financial distress. The rehabilitation process is designed to help debtors overcome their financial difficulties and repay their debts over time, while protecting the interests of their creditors.
Under Georgia's legal system, the rehabilitation process can be initiated by either the debtor or the creditors. The debtor must submit a rehabilitation plan to the court, which must be approved by a majority of the creditors. The plan must include a detailed assessment of the debtor's financial situation, a proposed repayment schedule, and a list of proposed measures to be taken to improve the debtor's financial position.
Once the rehabilitation plan is approved, the debtor must adhere to the repayment schedule, which may involve paying off the debts in installments or restructuring them. During the rehabilitation process, the debtor is protected from legal action by their creditors, as long as they comply with the terms of the plan.
The rehabilitation process in Georgia also includes provisions for the collective satisfaction of creditor's claims. This means that creditors can work together to collect their debts, which can be more efficient and cost-effective than pursuing legal action individually.
Under Georgian law, creditors can form a creditors' committee, which is responsible for overseeing the rehabilitation process and ensuring that the debtor adheres to the repayment plan. The committee has the power to negotiate with the debtor on behalf of all the creditors and to take legal action if necessary.
In conclusion, rehabilitation and collective satisfaction of creditors' claims in Georgia provide a legal framework for debtors to overcome their financial difficulties while protecting the interests of their creditors. The process involves a detailed assessment of the debtor's financial situation, a proposed repayment schedule, and measures to improve the debtor's financial position. The collective satisfaction of creditor's claims allows creditors to work together to collect their debts more efficiently, while the rehabilitation process protects debtors from legal action as long as they comply with the terms of the plan.
