Legal Question in Bankruptcy in Georgia

Margin Debt In Regards To Bankrupty Law

If an individual cannot meet a debt in a commodities margin account and doesn't have enough assets or income to meet the debt, what is the law concerning this type of debt in a bankrupty situation when the individual has no other debt. Can the individual be forced into a bankrupty because of margin debt, and does he have any rights that he should be aware of? The amount of debt is more than the individual can pay in his lifetime, even with liquidating his assets.


Asked on 11/05/97, 10:19 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Margin debt/Bankruptcy

If there is no other debt, the single creditorcan file an involuntary bankruptcy petition, or he can file to avoid continued garnishmentsand other collection efforts. There is nothing to preclude a bankruptcy when there isonly one creditor. On the other hand, it maybe possible to negotiate a solution by offeringmore than the creditor would get in a bankruptcy,but something still affordable. It's a loteasier to negotiate with a single creditor than a bunch of them.

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Answered on 11/06/97, 11:41 pm


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