Statute of Limitations on Debt in Georgia

Statute of Limitations on Debt in Georgia

by | Aug 25, 2020 | Bankruptcy

Georgia Debt Statute of Limitations

In the State of Georgia, there are debt collection laws in place to protect the debtor from it’s creditors.  One of the laws is called a statute of limitations, and it determines how long a creditor can pursue with legal action towards a debt.

Usually, when a creditor  is not being paid, they can and will file to have a judgment against the debtor in a court of law. If successful, the creditor can legally have that debt collected though wage garnishment, bank garnishment or have liens placed against their property.

The main reason that Georgia, along with other states have a statute of limitations on debt is to provide a”reasonable” time period for debt collectors to bring a civil judgment against the debtor. In most cases. the statute of limitations on debt starts the date of the last payment made by the debtor.  This is very important because many times a debt collector or collection agency will try to get the debtor to pay a small amount towards their debt, and if successful, the statute of limitations starts all over again.

Breach of Contract

In Georgia, when a debt collector files a suit against the debtor, they are actually filing a “breach of contract”.  The debt collector is the plaintiff and the debtor is the defendant. The defendant needs to be properly served and aware that there is a breach of contract suit filed against them. There will be a court date and when the defendant or debtor appears in court, they will have a chance to prove to the court why they believe they no longer owe that debt. Many times it is because the statute of limitations has run out. If the defendant cannot make a case to the court why they shouldn’t have to pay the debt, or like in many cases, the defendant does not show up for the court appearance, the plaintiff will win their breach of contract suit against the debtor and the court will award them a judgment. Once the judgment is made the debt collector can:

Garnish Wages

If the debtor is employed the debt collector can have the debtors wages garnished for up to 25%

Garnish Bank Account

The debt collector will legally be able to take the full amount of money owed from the debtors checking or savings account

Record a Writs of Fieri Facias  (Fi FA)

in the state of Georgia a Fi Fa, or Writs of Fieri Facias is when the debt collector records a lien against the judgment debtors property. it can also be used to seize the debtors personal assets.  When the debtor goes to sell their property and there is a Fi Fa lien, the debtor will not be able to transfer ownership to another person until it is paid.

Written Contracts – 6 Years

The statute of limitations for written contracts in the state of Georgia is 6 years.

Credit Cards

Although it may seem that a credit card would be an oral contract, the state of Georgia considers it a written contract. The moment you use your credit card for a purchase,

Open Accounts

An open account is an account that is open and being utilized by the individual. These include accounts such as credit cards, company sponsored charge accounts, etc. Courts in Las Vegas and Reno have determined that in Nevada this statute of limitation is four years; however, some courts may apply a six-year statute of limitations because these accounts are opened with written contracts.

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Matthew Cherney


At Cherney Law Firm LLC, clients can expect the highest quality legal representation alongside thoughtful counseling and attention to detail. Mr. Cherney dedicates his time to properly investigating every possible avenue of debt relief for his clients before simply stepping into bankruptcy. Seeking to make each consumer that comes to him for legal aid as comfortable as possible, he keeps his clients in the loop with every step he takes.

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