What happens if a debtor changes their name?

When a debtor changes their name, the financing statement does remain effective for a period of time concerning collateral acquired within a specific timeframe. In this context, Georgia law allows that if a debtor's name has changed, the original financing statement can still have effect for new collateral acquired by the debtor within four months after the name change. This provision helps protect the interests of the secured party during the transition period and ensures that their security interest continues to be enforceable for new assets without requiring immediate refiling.

However, it's important to note that after this four-month period, if the financing statement is not amended to reflect the debtor's new name, the security interest may not be valid for collateral acquired after that time. Therefore, while the statement remains effective for the four-month duration, timely action must be taken to amend or refile to ensure ongoing protection for the secured party’s interest.