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Georgia Debt Relief

Georgia Debt Relief: Long Clocks for Creditors, One Rule That Favors You

Georgia gives credit card creditors 6 years to sue and lets a single garnishment run for 3, both worse for debtors than most states. Its counterweight: no payment restarts the clock unless you put it in writing.

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This page is for informational purposes only and does not constitute legal or financial advice. State laws change frequently. Consult a qualified attorney or financial professional for advice specific to your situation.

Georgia tilts toward creditors in two ways most residents do not expect: credit card suits get 6 years, not the 4 many assume, and a garnishment served on your employer now runs for up to 3 years on a single filing. The state's quiet gift back is that old debts cannot be revived by a phone call payment.

1,095

days a single Georgia garnishment now runs

Since January 1, 2021, a continuing garnishment lasts up to 3 years per filing, up from 179 days. Most consumer sites still describe the old 6 month window.

The clocks, and the case that set them

Written contracts carry 6 years under OCGA 9-3-24, and Georgia's appellate courts held in Hill v. American Express that credit card accounts qualify, using the card is agreement enough, so card suits get the full 6 years. Open accounts and oral agreements carry 4 years, and contracts under seal reach 20.

The start date is when the debt became due and payable, which for cards typically means the default that followed your last payment. Six years is a long memory; account records from the original creditor era become the battleground in older suits.

The revival rule Georgians should actually know

If I make even a small payment on an old debt, the clock restarts.
Not in Georgia without a writing. A new promise must be written and signed, or the payment must be entered on a written evidence of debt or accompanied by a written acknowledgment. A bare partial payment over the phone does not restart the limitations period here.
Once a garnishment starts, it ends after a few months.
A continuing garnishment served on your employer now lasts up to 1,095 days, roughly 3 years, on a single filing. It follows your paychecks at the federal formula rate, the lesser of 25 percent of disposable earnings or the excess over 30 times the federal minimum wage, 15 percent for private student loan judgments.

What a judgment can reach here

Georgia follows the federal garnishment formula without extra state protection for ordinary debts, so the calculator math applies directly. Bank accounts have no automatic shield; exemptions must be claimed, and the key figures are a $21,500 homestead ($43,000 in some spousal title situations), a $5,000 vehicle exemption, and a wildcard of $1,200 plus up to $10,000 of any unused homestead exemption.

Those numbers do real work in negotiations: a debtor whose equity sits inside the exemptions has less to fear from enforcement, and a creditor who can count knows it.

Debt adjusters are fee capped

Georgia's Debt Adjustment Act caps what a debt adjuster may charge at 7.5 percent of the amount paid monthly for distribution to creditors, requires client funds in a separate audited trust account, and disbursal to creditors within 30 days. It is one of the older and blunter fee caps in the country, and it applies alongside the federal advance fee ban for settlement services sold by phone.

Georgia debt questions

What is the statute of limitations on credit card debt in Georgia?

6 years under OCGA 9-3-24, per Georgia appellate case law treating card accounts as written contracts, with the period running from when the debt became due. Open accounts and oral agreements carry 4 years.

How long does a wage garnishment last in Georgia?

A continuing garnishment served on an employer runs up to 1,095 days, about 3 years, on a single filing, a 2021 change from the old 179 day window. Withholding follows the federal formula, capped at 15 percent for private student loan judgments.

Does a partial payment restart the statute of limitations in Georgia?

Not by itself. Georgia requires a writing: a signed new promise, a payment entered on the written evidence of the debt, or a written acknowledgment of the liability. This is more protective than the rule in many states.

What property is exempt from judgments in Georgia?

Core figures under OCGA 44-13-100: $21,500 of home equity ($43,000 in certain spousal title situations), $5,000 of vehicle equity, and a wildcard of $1,200 plus up to $10,000 of unused homestead exemption. Bank balances have no automatic protection, so exemptions must be claimed.

Are debt settlement fees capped in Georgia?

Georgia's Debt Adjustment Act caps debt adjuster charges at 7.5 percent of the monthly amount distributed to creditors, with trust account and disbursement requirements, alongside the federal ban on advance fees for telemarketed debt relief.

Sources and further reading: OCGA 9-3-24 (6 year written contracts), OCGA 18-4-4 (1,095 day continuing garnishment), OCGA 18-4-5 (garnishment formula), OCGA 44-13-100 (exemptions), Georgia AG Consumer Ed: credit card time limits. Rates and rules change; confirm current figures with the official sources above before you rely on them.

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