Georgia Statute of Limitations on Debt Collection
Many consumers in the state of Georgia are dealing with unpaid
credit card bills, medical bills, and other unpaid loans.
When debts go unpaid for a long period of time, creditors may
decide to institute a lawsuit against the consumer so that the
creditor can obtain a judgment. A judgment provides the
ability to collect money involuntarily through wage garnishments or
seizures of bank accounts or other property.
A debtor being sued by a creditor should be informed of the
statute of limitations for a breach of contract action.
That's because most lawsuits for the collection of debts are
considered breach of contract cases. In Georgia, written
contracts have a statute of limitations period of 6 years from the
time in which the debt becomes due and payable and the period runs
from the date of last payment (OCGA 9-3-24). On the contrary
an open account, implied promise or undertaking has a statute of
limitation of only 4 years (OCGA 9-3-25). Prior to entering into an
agreement to pay off a debt, a consumer should ensure the debt is
actually still due and payable.
NOTE: Payment, unaccompanied by a writing acknowledging
the debt, does not toll the statute; the statutory period runs from
the date of default, not the date of last payment.