The Statute of Limitations for Collecting Debt in Georgia
How much time does a debt collector or a creditor in Georgia have to collect on the debt you owe? To answer this question, it is essential to understand what a statute of limitations is and how it works. As long as the clock on the statute of limitations is still “ticking,” then the debt collector or creditor can continue to make attempts to collect the debt you owe, which may include actions like a civil lawsuit against you to collect the debt, or an attempt at wage garnishment. Once the statute of limitations runs out, debt collection actions such as those mentioned above cannot be taken. An experienced Georgia debt settlement lawyer at Konn Law Firm LLC can explain in more detail.
What is a Statute of Limitations?
To understand how debt collection statutes of limitations work in Georgia, it is important to be clear about what a statute of limitations is and how it works more generally.
For any type of legal action, there is a time window associated with it. In other words, there is only a specific amount of time in which a particular type of legal action can be taken. That time window varies greatly between different areas of the law, but that time window is known as the statute of limitations. Debt collection actions, like other types of legal claims, come with their own statutes of limitations.
Debt Collection Statutes of Limitations in Georgia
Under Georgia law, the debt collection statute of limitations for most types of debt is 6 years. The “clock” will start to “tick” on the date that the debt became due. From that point forward, a creditor or debt collector has 6 years to file a civil lawsuit (or to take other related actions) to collect the debt owed. This statute of limitations applies to all debts based on written contracts, which includes credit card debt, personal loan debt, and most types of medical debt.
Debts that arise out of oral contracts have a 4-year statute of limitations, but most types of debt incurred by Georgia residents are likely to arise from written contracts, so the 6-year statute of limitations is likely to apply. Before you make an assumption, however, it is important to ask a lawyer.
Why Does the Statute of Limitations in Debt Collection Matter?
Once the statute of limitations has “run out,” meaning once the time window closes, the debt collector’s claim is time-barred. What that means is that the debt collector or creditor cannot take action against you for the debt. Technically, you still owe it, but actions to collect it are now time-barred.
Contact Our Georgia Debt Settlement Lawyers
If you have any questions about how the statute of limitations is likely to impact the debt you owe, or if you want to find out more about seeking options for debt settlement, it is important to seek legal advice. One of the experienced Georgia debt settlement attorneys at Konn Law Firm LLC can speak with you today to learn more about the types of debt you owe. We can provide you with more information about how the statutes of limitations for different types of debt in Georgia are likely to impact debt collection and your options for resolving your debts. Contact us to learn more.
Source:
law.justia.com/codes/georgia/2022/title-9/chapter-3/article-2/section-9-3-24/
