When is a debt considered too old for collection under Georgia’s statute of limitations?

If a debt collector is contemplating legal action to collect a debt from you, there exists a specific period during which the law permits such action; otherwise, you gain an legal defense against the claim. The timeframe is called the statute of limitations and varies depending on state law and the nature of the debt collector’s lawsuit.

WHAT IS GEORGIA’S STATUTE OF LIMITATIONS FOR DEBTS?

In Georgia, a lawsuit arising from a written contract (such as a credit card agreement) must be initiated within six years from the date of default to avoid encountering a statute of limitations defense.

HOW CAN I DETERMINE THE STATUTE OF LIMITATIONS DATE?

The statute of limitations begins when the account is “charged-off” due to missed payment. This date is often identifiable by checking your credit card statements. However, your actions may influence the starting point, potentially extending or renewing the statute of limitations period.

SOME ACTIONS CAN RENEW THE STATUTE OF LIMITATIONS DATE!

If you suspect that the statute of limitations has lapsed on a debt, making payments or promising to pay the debt can renew or extend the statute of limitations period. Therefore, paying for old debts, even with good intentions, may expose you to legal risks.

Once a debt reaches a point where it is too old to be legally pursued, it is termed “time-barred” debt. Upon the expiration of the statute of limitations, you possess a valid legal defense against any potential lawsuit.

However, this doesn’t prevent a debt collector from filing a lawsuit. It becomes your legal responsibility to promptly file an Answer to the lawsuit, asserting the legal defense of expiration of the statute of limitations. Ignoring the lawsuit could lead to the debt collector obtaining a judgment against you, irrespective of the statute of limitations period.

THREATS OF LEGAL ACTION ON TIME-BARRED DEBT VIOLATE THE FAIR DEBT COLLECTION PRACTICES ACT.

If a debt collector threatens to sue you for a time-barred debt, it violates the Fair Debt Collection Practices Act. If you are receiving threatening letters or calls regarding a time-barred debt, it is advisable to contact my office promptly.

WHAT TO DO IF YOU HAVE BEEN SUED

Contact Diwan Law right away if you are being sued. We have the expertise and experience to defend you in each part of your case.

Our law firm is experienced in debt collection law and has an established record of protecting consumer’s rights and explaining your options. Give us a call at 404.635.6883.

* The information presented in this article does not constitute legal advice. All information, content, and materials presented on this website are for general informational purposes only. If your business is sued, we encourage you to contact Diwan Law before taking any action.