Equitable assets may be reached by a creditor in every case where he shows that there is danger of not being satisfied out of legal assets.
(Orig. Code 1863, § 3084; Code 1868, § 3096; Code 1873, § 3153; Code 1882, § 3153; Civil Code 1895, § 4004; Civil Code 1910, § 4601; Code 1933, § 37-408.)
Law reviews.- For article, "Retirement Benefits: Protection from Creditors' Claims," see 24 Ga. St. B.J. 118 (1988). For note, "Georgia Becomes A Quasi Community Property State,"see 17 Ga. St. B.J. 134 (1981). For comment, "The Georgia Supreme Court's Creation of an Equitable Interest in Marital Property - Yours? Mine? Ours!," see 34 Mercer L. Rev. 449 (1982).
JUDICIAL DECISIONS
Appointment of receiver to sell debtor's property to prevent financial loss by judgment creditor.
- When a debt secured by a deed is interest bearing and not due, and a redemption under former Code 1933, §§ 39-201, 39-202 (see O.C.G.A. § 9-13-60) would cause the judgment creditor to lose a substantial sum approximating the amount of the unearned interest, the debtor having no other property from which to satisfy the judgment, a subsequent judgment creditor may proceed in equity for the appointment of a receiver for the purpose of selling the property subject to the principal of the debt and accrued interest. Cook v. Securities Inv. Co., 184 Ga. 544, 192 S.E. 179 (1937).
Creditors can bring a petition in equity to reach the interest of a beneficiary under a trust unless the beneficiary's interest is exempt by the terms of the trust or by statute. The creditor must exhaust legal remedies before proceeding in equity, but this requirement does not apply if it appears that the attempt to exhaust legal remedies would be futile. Henderson v. Collins, 245 Ga. 776, 267 S.E.2d 202 (1980).
Cited in Grimmett v. Barnwell, 184 Ga. 461, 192 S.E. 191 (1937); Yancey v. Grafton, 197 Ga. 117, 27 S.E.2d 857 (1943).
RESEARCH REFERENCES
ALR.
- Jurisdiction of equity to sequester, seize, enjoin transfer of, or otherwise provisionally secure assets for application upon money demand which has not been reduced to judgment, 116 A.L.R. 270.