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.