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2018 Georgia Code 18-2-20 | Car Wreck Lawyer

TITLE 18 DEBTOR AND CREDITOR

Section 2. Debtor and Creditor Relations, 18-2-1 through 18-2-85.

ARTICLE 2 ACTS VOID AS AGAINST CREDITORS

18-2-20. Rights of creditors to be favored by courts.

The rights of creditors shall be favored by the courts; and every remedy and facility shall be afforded them to detect, defeat, and annul any effort to defraud them of their just rights.

(Orig. Code 1863, § 1947; Code 1868, § 1935; Code 1873, § 1945; Code 1882, § 1945; Civil Code 1895, § 2687; Civil Code 1910, § 3216; Code 1933, § 28-102.)

JUDICIAL DECISIONS

General Consideration

Rights to set aside fraudulent transfers.

- Former Code 1933, §§ 28-101, 28-102, 28-201 and 28-202 (see now O.C.G.A. §§ 18-2-1,18-2-20 and18-2-70) provided the creditors with the right to set aside fraudulent transfers, and this remedy was available to any creditor at the time of transfer who thereafter reduced the creditor's claim to a judgment lien. United States v. Hickox, 356 F.2d 969 (5th Cir. 1966).

Intervention by former partner was authorized by former Code 1933 §§ 28-102 and 28-103 (see now O.C.G.A. §§ 18-2-20 and § 18-2-3, respectively) to wind up affairs since the partner's allegations were sufficient. Sheppard v. Bridges, 137 Ga. 615, 74 S.E. 245 (1912).

Interlocutory appointment of receiver under creditor's bill attacking voluntary assignment for fraud was not error. Oliver & Co. v. Victor & Co., 74 Ga. 543 (1885).

Debtors cannot shift assets at will, giving creditors mere notice.

- If not a violation of the letter of former Civil Code 1910, §§ 3216 and 3217 (see now O.C.G.A. §§ 18-2-20 and § 18-2-3, respectively) it would certainly not accord with their spirit and purpose to hold that a firm of debtors could shift their assets at will, and impose on their creditors duties by mere notice, but could prevent a creditor from accepting for the creditor's benefit the status which they had thrust upon the creditor for their own. Sheppard v. Bridges, 137 Ga. 615, 74 S.E. 245 (1912).

One to whom alimony is due is creditor.

- Willful failure to provide for the maintenance and support of spouse and children creates a lawful demand which, when legally enforced, is called alimony, and is a debtor/creditor relation. Carter v. Bush, 216 Ga. 429, 116 S.E.2d 568 (1960).

Damages available.

- Georgia law allowing the recovery of general and punitive damages for fraudulent conveyances survived the enactment of Georgia's Uniform Fraudulent Transfers Act, O.C.G.A. § 18-2-70 et seq. Interfinancial Midtown, Inc. v. Choate Constr. Co., 343 Ga. App. 793, 806 S.E.2d 255 (2017).

Cited in Robert v. Tift, 60 Ga. 566 (1878); Daniel v. Prost, 62 Ga. 697 (1879); Orton v. Madden, 75 Ga. 83 (1885); Hood v. Perry, 75 Ga. 310 (1885); Turnipseed v. Schaefer, 76 Ga. 109, 2 Am. St. R. 15 (1886); Banks v. McCandless, 119 Ga. 793, 47 S.E. 332 (1904); Stewart v. Mundy, 131 Ga. 586, 62 S.E. 986 (1908); Taylor Lumber Co. v. Clark Lumber Co., 33 Ga. App. 815, 127 S.E. 905 (1925); Johnson v. Tifton Buick Co., 40 Ga. App. 158, 149 S.E. 73 (1929).

Actions

It is essential that creditors' pleadings set forth facts entitling each to maintain an action. Fouche v. Brower, 74 Ga. 251 (1884).

Creditor bringing suit to prevent fraudulent conveyances acquires lien at commencement of suit.

- Creditor, who brings suit to prevent the debtor from carrying into effect a threat to convey away all of the debtor's property for purpose of defeating claims of such creditor, acquires a lien from commencement of the suit to prevent such fraudulent conveyance, and after service of process. Law v. Coleman, 173 Ga. 68, 159 S.E. 679 (1931).

RESEARCH REFERENCES

C.J.S.

- 37 C.J.S., Fraudulent Conveyances, §§ 1, 150 et seq.

ALR.

- Larceny or embezzlement as affected by purpose to take or retain property in payment of, or as security for, a claim, 13 A.L.R. 142; 116 A.L.R. 997.

Availability of judgment under which exempt property has been seized as a set-off or counterclaim against claim based on the wrongful seizure, 20 A.L.R. 276.

Attachment or execution creditor as purchaser within rule that first of two purchasers to obtain possession will prevail, 21 A.L.R. 1031.

Right of creditor to interest after bankruptcy, declared insolvency, or appointment of receiver, where assets are more than sufficient to pay the principal of all claims, 39 A.L.R. 457; 44 A.L.R. 1170.

Property covered by power of appointment as subject to claims of donee's creditors, 121 A.L.R. 803.

Right of creditors in respect of property gratuitously conveyed or transferred to a third person for alleged benefit of debtor, 147 A.L.R. 1160.

Purchase of annuity by debtor as fraud on creditors, 154 A.L.R. 727.

Construction and effect of provision in note for "renewal until paid," and the like, 35 A.L.R.2d 1090.

Conveyance or transfer in consideration of legal services, rendered or to be rendered, as fraudulent as against creditors, 45 A.L.R.2d 500.

Exemption of proceeds of national service life insurance from claims of creditors, 54 A.L.R.2d 1335.

Right of creditor to set up statute of limitations against other creditors of his debtor, 71 A.L.R.2d 1049.

Unsolicited mailing, distribution, house call, or telephone call as invasion of privacy, 56 A.L.R.3d 457.

Purchase of annuity by debtor as fraud on creditors, 74 A.L.R.6th 549.

Creditor's right to have bankruptcy discharge of individual debtor revoked, vacated, and set aside, 138 A.L.R. Fed 253.

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