The insolvency estate comprises assets and rights with monetary value attributable to the debtor and included in the insolvency proceedings under the applicable rules. These may include, in particular, business property, receivables, account balances, and rights that can be realized. Property belonging to third parties does not become part of the estate merely because it is in the company’s possession or used in its business. Ownership, security interests, and contractual rights of use must therefore be documented separately for each asset. Who may dispose of accounts, property, or rights after the proceedings are opened depends on the type of proceedings and the court’s decision. Previous signing and account authorizations do not automatically remain sufficient for further transactions. If the business continues operating, new obligations may arise that must be assigned to the ongoing proceedings and the insolvency estate. Such estate liabilities must be distinguished in time and substance from debts that already existed before the proceedings were opened. A complete inventory of assets, reliable proof of ownership, and separate records of new obligations provide the basis for administering, continuing, or realizing the company’s assets.
A company’s insolvency estate in proceedings in Georgia
After insolvency proceedings are opened in Georgia, the company’s assets must be fully identified and legally assigned to the proceedings. In addition to determining the scope of the insolvency estate, it is necessary to clarify who is authorized to dispose of assets and to distinguish new estate liabilities from the company’s older debts.
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