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2018 Georgia Code 9-3-111 | Car Wreck Lawyer

TITLE 9 CIVIL PRACTICE

Section 3. Limitations of Actions, 9-3-1 through 9-3-115.

ARTICLE 6 REVIVAL

9-3-111. Written promise following discharge in bankruptcy.

No promise made after discharge in bankruptcy to pay a debt provable in bankruptcy from the liability of which the debtor has been discharged shall be valid or binding upon the debtor or promisor unless the same is made in writing and signed by the party making the same or to be charged therewith, or by someone duly authorized by him.

(Ga. L. 1905, p. 101, § 1; Civil Code 1910, § 4384; Code 1933, § 3-902.)

JUDICIAL DECISIONS

Bankruptcy of debtor does not extinguish debt, but merely operates as a bar to an action thereon. Oglesby v. Trust Co., 47 Ga. App. 749, 171 S.E. 393 (1933).

Debt discharged in bankruptcy is not extinguished but only barred. Such a debt can be reassumed. Siefferman v. Peppers, 159 Ga. App. 688, 285 S.E.2d 61 (1981).

Requirements of agreement.

- If creditor is to successfully invoke reassumption agreement in order to enforce obligations of a bankrupt on a debt discharged in bankruptcy, agreement to reassume must be clear, express, distinct, unequivocal, and without qualification or condition. Peppers v. Siefferman, 153 Ga. App. 206, 265 S.E.2d 26 (1980).

Promise made after adjudication but before discharge.

- Promise by debtor made after adjudication as a bankrupt but before discharge will not be impaired by subsequently acquired discharge, as discharge relates back to adjudication in bankruptcy. Moore v. Trounstine, 126 Ga. 116, 54 S.E. 810, 7 Ann. Cas. 971 (1906); Dicks v. Andrews, 132 Ga. 601, 64 S.E. 788, 16 Ann. Cas. 1070 (1909); Bank of Elberton v. Vickery, 20 Ga. App. 96, 92 S.E. 547 (1917).

While promise by debtor, made after adjudication as a bankrupt but before discharge, will not be impaired by subsequently acquired discharge, as the discharge relates to the adjudication, such promise must be clear, express, distinct, unequivocal, and without qualification or condition before it will be enforceable against the bankrupt. Oglesby v. Trust Co., 47 Ga. App. 749, 171 S.E. 393 (1933).

Acquiescence that discharged debt is "owing" is insufficient to overcome effect of discharge in bankruptcy when discharge has been set forth in an affirmative defense to an action on the debt. Peppers v. Siefferman, 153 Ga. App. 206, 265 S.E.2d 26 (1980).

Promissory note held sufficiently specific.

- When written promise to revive debt otherwise barred by bankruptcy is in the form of a promissory note, made out to creditor, for balance due on the debt, and there are no circumstances authorizing any other conclusion, the promise is sufficiently specific to be enforceable. Waters v. Lanier, 116 Ga. App. 471, 157 S.E.2d 796 (1967).

Although executory contract does not remain in force after one party has received a discharge in bankruptcy, parties may, by subsequent acquiescence in its terms and performance of its conditions, elect to treat such contract as still subsisting. Fairmont Creamery Co. v. Collier, 21 Ga. App. 87, 94 S.E. 56 (1917), overruled on other grounds, Brock Constr. Co. v. Houston Gen. Ins. Co., 144 Ga. 861, 243 S.E.2d 85 (1978).

Credit entered and signed by maker upon promissory note is acknowledgment of the debt as existing at the time of entry and operates as a new promise. Siefferman v. Peppers, 159 Ga. App. 688, 285 S.E.2d 61 (1981).

Endorsement of checks with debt payments deducted.

- When a debtor discharged in bankruptcy had without complaint endorsed and cashed checks from which were expressly deducted payments to the debtor's old debt, such written acquiescence might amount to a new contract to pay the debt. Siefferman v. Peppers, 159 Ga. App. 688, 285 S.E.2d 61 (1981).

Amendment of pleadings.

- When action is brought upon a debt and defendant pleads discharge in bankruptcy, plaintiff may amend the plaintiff's petition by alleging a new promise to pay, made in compliance with this section. Shumate v. Ryan, 127 Ga. 118, 56 S.E. 103 (1906); Beasley v. Padgett, 28 Ga. App. 268, 110 S.E. 739 (1922).

Cited in Draper v. Macon Dry Goods Co., 103 Ga. 661, 30 S.E. 566, 68 Am. St. R. 136 (1898); Beasley v. Padgett, 28 Ga. App. 268, 110 S.E. 739 (1922); Brazell v. Hearn, 33 Ga. App. 490, 127 S.E. 479 (1925); Massey v. Winchester, 38 Ga. App. 186, 143 S.E. 617 (1928); State v. Crane, 224 Ga. 643, 164 S.E.2d 116 (1968).

RESEARCH REFERENCES

Am. Jur. 2d.

- 51 Am. Jur. 2d, Limitation of Actions, §§ 319, 325 et seq.

C.J.S.

- 54 C.J.S., Limitations of Actions, § 308.

ALR.

- What amounts to promise to pay which will avoid effect of discharge in bankruptcy, 75 A.L.R. 580.

Effect of subsequent acceptance of note or other contractual obligation in payment, or as evidence, of claim not otherwise barred by discharge in bankruptcy, 145 A.L.R. 1238.

Constitutionality, construction, and application of statute modifying or limiting effect of acknowledgment, payment, or other conditions to toll or extend the period of limitation with respect to mortgage foreclosure, 150 A.L.R. 134.

No results found for Georgia Code 9-3-111.