In Georgia, how is priority determined between secured parties and judgment lien creditors?

In Georgia, priority between secured parties and judgment lien creditors is determined by the timing of when the security interest is perfected or recorded. A secured party who has properly perfected their interest typically holds priority over the claims of later creditors, including judgment lien creditors, that may arise after the security interest was perfected.

Perfection can be achieved in various ways, such as through filing a financing statement or by possession of the collateral. The principle behind this is to provide certainty and predictability in the debt collection hierarchy, ensuring that those who have taken steps to secure their interests do not have their rights subordinated to parties that have not taken similar precautions.

While a judgment lien creditor may claim a superior interest in certain circumstances, generally, the priority established by the perfection of a security interest will prevail, reflecting the importance of timely and proper registration of a secured interest in protecting the rights of secured creditors. This is consistent with the Uniform Commercial Code (UCC) guidelines that prioritize the interests based on the order of perfection.