Statute of Limitations on Debt in Georgia: Know Your Rights
Georgia sets a four-year statute of limitations on credit card debt and six years for most other debts. Once this period expires, creditors can't legally sue you, but you must assert this defense in court. If you're sued for time-barred debt, file a written Answer within 30 days to protect your rights.
Answer Your LawsuitGeorgia residents carry some of the highest debt loads in the United States. Auto loans, student debt, and credit cards plague many households across the state.
But creditors can’t chase you forever. The statute of limitations on debt sets a legal deadline for lawsuits.
Respond to Your Georgia Debt Lawsuit in 15 Minutes
Don't let debt collectors win by default. Draft and file your Answer asserting the expired statute of limitations before your 30-day deadline.
Start Your Answer NowYou need to know these time limits to protect yourself.
Understanding the Statute of Limitations on Debt
The statute of limitations is a legal deadline for debt collection lawsuits. After this period expires, creditors lose their right to sue you in court.
In Georgia, the clock varies by debt type. Credit card debt expires after four years. Most other debts have a six-year limit.
Once the statute of limitations passes, debt collectors can’t legally sue you. But they might try anyway. Debt buyers like LVNV Funding and Midland Funding often file lawsuits on expired debts.
If you get sued for time-barred debt, you must defend yourself. The court won’t automatically dismiss the case. You need to file a written Answer asserting the expired statute of limitations.
Our partner Solo helps you respond to debt lawsuits in 15 minutes.
Georgia Statute of Limitations by Debt Type
Georgia law sets different deadlines based on your contract type.
Four-Year Statute of Limitations
Georgia Code § 9-3-25 establishes a four-year limit for these debts:
- Credit card debt (open accounts)
- Breach of contract claims
- Implied promises or undertakings
Georgia Code § 9-3-26 covers oral contracts with the same four-year deadline.
Six-Year Statute of Limitations
Georgia Code § 9-3-24 sets a six-year limit for written contracts:
- Medical debt
- Student loans
- Auto loans
- Mortgages
- Personal loans
Quick Reference Guide
| Debt Type | Time Limit |
|---|---|
| Credit Card | 4 years |
| Medical | 6 years |
| Student Loan | 6 years |
| Auto Loan | 6 years |
| Mortgage | 6 years |
| Personal Loan | 6 years |
| Judgment | 7 years |
Avoid making payments on expired debt. A single payment can restart the statute of limitations clock.
How to Respond to a Debt Lawsuit in Georgia
You have 30 days to respond to a debt lawsuit in Georgia. Miss this deadline and you lose automatically.
A default judgment gives collectors power to garnish your wages. They can seize your property to recover the debt.
You don’t need an attorney to fight back. Our partner Solo increases your chances of winning by seven times.
Three Steps to File Your Answer
Your written Answer must include these elements:
- Respond to each claim: Address every allegation in the Complaint document
- Assert affirmative defenses: Include the expired statute of limitations if applicable
- File and serve: Submit your Answer to the court and send a copy to the opposing attorney
Real Case Example
Rachel faced a lawsuit from Cavalry SPV for old credit card debt. She researched Georgia law and discovered the four-year statute of limitations.
Her last account activity occurred six years ago. Cavalry SPV had no legal right to sue her.
Rachel used our partner Solo to draft her Answer within 30 days. She listed the expired statute as an affirmative defense.
The court dismissed the case within weeks.
Strategies to Handle Georgia Debt
Ignoring debt makes everything worse. Penalties and fees pile up quickly. You might end up in court facing wage garnishment.
Several options can help you regain control.
Debt Consolidation Loans
These unsecured loans combine multiple debts into one monthly payment. The interest rate might be lower than your current payments.
You save money while simplifying your finances.
Balance Transfer Credit Cards
Many cards offer 0% APR on balance transfers for 12 to 24 months. You pay a 3-5% transfer fee upfront.
But you avoid interest charges during the promotional period. Use this time to pay down your principal balance.
Credit Counseling Services
The National Foundation for Credit Counseling connects you with certified counselors. Many offer free consultations and budgeting advice.
Community action agencies across Georgia provide assistance with utility bills and housing costs. Reducing these expenses frees up money for debt payments.
When to Consider Bankruptcy in Georgia
Bankruptcy should be your last resort. But sometimes you need a fresh start.
Georgia offers two main bankruptcy options:
Chapter 7 Bankruptcy
The court liquidates your assets to pay creditors. Your remaining debts are discharged completely.
Most people keep essential property like homes and cars through exemptions.
Chapter 13 Bankruptcy
You restructure your debt into a three to five-year repayment plan. You keep your property while catching up on missed payments.
Bankruptcy stays on your credit report for up to 10 years. But it won’t ruin your financial future forever.
Consult a bankruptcy attorney before filing. Many legal aid programs offer free or reduced-cost services for low-income individuals.
Explore all alternatives before choosing bankruptcy. But don’t wait if you truly can’t pay your debts.
Protecting Yourself from Debt Collectors
Debt collectors often sue on expired debts hoping you won’t respond. They count on default judgments to win easy cases.
You have rights under Georgia and federal law. Use them to protect yourself.
Check the statute of limitations on any old debt. If the deadline has passed, you have a strong defense.
File your Answer within 30 days of receiving a lawsuit. Include the expired statute as an affirmative defense.
Our partner Solo guides you through every step of responding to debt lawsuits.
Don’t let debt collectors intimidate you. Know your rights and use them.