Georgia debt: six years on most cards, and no state collection act

Six years for simple written contracts (O.C.G.A. 9-3-24). Four years for open accounts and other contracts not otherwise provided for (9-3-25).

In Hill v. American Express (2008), the Georgia Court of Appeals applied the six-year written-contract period to credit card debt, and a later appeals decision followed it. The Georgia Department of Law says the limit on credit card debt is generally six years.. Some websites still say four years for credit cards. Plan around six unless a lawyer tells you otherwise for your account.

Under Georgia law a promise to pay an old debt must be in writing to revive it, and courts have held that a partial payment alone, without a writing, is not enough (O.C.G.A. 9-3-110). The Department of Law still warns that payments and promises can cause problems, so do not pay or sign anything on an old account before checking. Even a small "good faith" payment on an old account can give the collector a fresh six years.

It also warns that people sued on very old debts often do not answer because they think the time has run out, and then a default judgment lets the collector take money from a paycheck, bank account or tax refund. An expired time limit is a defense you have to raise; the court will not raise it for you. Federal law also bars suits and threats of suits on time-barred debt.

Georgia's protections sit on top of federal law; our page on stopping a wage garnishment explains both.

After a judgment, a creditor can garnish the lesser of 25% of disposable earnings or the amount above 30 times the federal minimum wage. If disposable earnings are below 30 times the minimum wage, nothing can be garnished.

These limits have exceptions for child support, federal student loans and some other debts to the federal government. Georgia adds no protection beyond the federal formula for ordinary consumer debt, so a judgment can take up to a quarter of disposable pay.

For Georgia residents with old accounts, the 4-year limit is the key date; our zombie debt guide explains why.

Limits vary a lot between states: by comparison, Kentucky sets 5 years and New Hampshire sets 3 years for similar debts.

Our guide on how to dispute a debt with a collector applies in Georgia, with a free sample letter.

Georgia residents often hear from national agencies like Radius Global Solutions and Tate & Kirlin Associates; see our guides to each.

Most debt lawsuits end in default because people do not respond; our page on what to do if a debt collector sues you explains how to avoid that in Georgia.

Georgia has no comprehensive state debt collection act. The Fair Business Practices Act (O.C.G.A. 10-1-390 and following) prohibits unfair or deceptive practices in consumer transactions, including collection, and allows complaints to the Attorney General and private lawsuits.. Under the Fair Business Practices Act, an intentional violation can lead to three times actual damages, plus attorney's fees and costs.

Collection agents do not need a state license in Georgia, so a license check is not the test it is in other states. The federal dispute right is: a written dispute inside the validation period makes the collector stop until it mails verification.