Georgia enforces clear statutes of limitations that determine how long creditors and collection agencies have to file lawsuits to collect unpaid debts. After the statute expires, the debt is considered time-barred, which limits a creditor’s ability to obtain a court judgment. However, non-legal collection methods can still be pursued, provided they comply with federal and state debt collection laws.
Understanding these time limits is essential for creditors to protect their rights and ensure compliance while maximizing recovery efforts.
How the Statute of Limitation Works
The statute of limitations sets a deadline for filing a lawsuit to recover unpaid debts. This period typically starts on the date of the last payment or when the debt becomes delinquent. Once the statute expires, creditors can no longer sue the debtor, though the debt itself is not automatically eliminated.
Certain events, such as partial payments or acknowledgment of the debt in writing, can reset or toll the statute of limitations, giving creditors more time to pursue legal remedies. Even if a debt is time-barred, creditors can still attempt to collect through informal means, provided they adhere to legal restrictions.
What Are Georgia’s Statute of Limitations Laws?
In Georgia, the statute of limitations depends on the type of debt. Written contracts and open accounts, such as credit cards, have a six-year statute of limitations. Oral contracts have a four-year limit, and court judgments can be enforced for up to 7 years, with renewals allowed under certain circumstances.
Time Limits by Type of Debt in Georgia
| Open Accounts | 6 | Credit card debt, lines of credit, and other revolving credit arrangements typically fall here. |
Includes credit card debt and other revolving credit agreements. The clock starts after the first missed payment or delinquency.
| Written Contracts | 6 | Includes loans or other agreements documented and signed by both parties. |
Encompasses loans or agreements documented and signed by both parties. The limitation period begins at the first missed payment.
| Oral Contracts | 4 | Verbal agreements where terms are not formally recorded in writing. |
Verbal agreements without written documentation. These can be enforceable but harder to prove in court.
| Promissory Notes | 6 | Debts confirmed by a signed note (e.g., some private loans, certain business debts). |
Written promises to pay a specific amount, such as private loans. The period starts after the first missed payment.
| Judgments | 7 | Court-ordered judgments can be enforced for 7 years and may be renewed to extend the enforcement period. |
Tolling & Exceptions to The Statute of Limitations
Certain events or actions can pause or reset Georgia’s statute of limitations:
Partial Payment or Acknowledgment of Debt: If the debtor makes a payment or formally acknowledges the debt after the clock starts, the limitations period may reset.
Leaving the State: If the debtor leaves Georgia, the statute may pause until they return or can be effectively served.
Fraud or Concealment: If fraud is involved, the statute may not begin until the fraud is discovered.
Frequently Asked Questions for Businesses & Creditors
1. How does the statute of limitations impact my ability to collect on past-due accounts?
Once the statute of limitations is up, the debt is considered “time-barred.” While you can still pursue collection informally, you cannot obtain a court judgment against the debtor. It’s often more fruitful to focus on debts still within the enforceable window.
2. How do I know if I’m still within the statute of limitations period?
Typically, the clock starts from the date of the last payment or when the account became delinquent. To determine the exact timeframe:
- Check your records for the last payment or invoice date.
- Review any applicable contracts or notes for specific terms.
- If unsure, consult a professional at DebtCollectorsInternational.com.
3. Should I try to collect a debt even after the statute of limitations expires?
You can still request payment through letters or calls, but a time-barred debt can’t be enforced in court. Prioritizing legally enforceable debts often yields better results.
4. Does making a partial payment or acknowledging the debt change the statute of limitations?
Yes. Acknowledgment or partial payment may reset the clock, giving you another window to seek legal enforcement.
5. How do I determine the type of debt and its specific time limit?
Different types of debt (open accounts, written contracts, promissory notes, or judgments) often have unique limitation periods. Review:
- The original agreement to see if it was written, verbal, or a promissory note.
- Any judgment documents for court-ordered deadlines.
- Relevant state statutes or consult a legal advisor for clarity.
6. What if the debtor moves out of the state?
The statute may be paused until the debtor returns or is otherwise reachable within the jurisdiction of your state. This extension can give creditors additional time to file suit.
7. What are my next steps if my debtor is within the statutory timeframe?
- Gather documentation (contracts, invoices, communications).
- Consult a debt collection agency for professional assistance.
Acting promptly and with proper legal guidance can greatly improve recovery rates.
8. Why should I consider using a professional debt collection agency?
- Expertise: Agencies understand collection laws, negotiation tactics, and best practices.
- Time Savings: Free up internal resources to focus on business growth rather than chasing debts.
- Higher Recovery Rates: Skilled collectors often have better success at recovery efforts.
9. How can Debt Collectors International help my business?
At Debt Collectors International, we specialize in global and domestic debt recovery, offering:
- Global & Domestic Debt Recovery: We have the expertise and network to handle cases worldwide.
- Comprehensive Legal Support: Stay compliant with state and federal laws.
- Skilled Negotiation Tactics: Maximize returns without harming client relationships.
- Transparent Reporting: Get regular updates on your debt recovery progress.
- No Recovery — No Fee: You only pay if we successfully collect your debt.
Need Help Collecting a Debt or Negotiating a Settlement?
Click here to request a free debt collection consultation with Debt Collectors International. Our specialists will assess your situation and propose effective strategies to recover overdue accounts—quickly and professionally.
Disclaimer: The information in this guide is subject to change as laws evolve. For specific advice related to debt collection in Georgia, consult a licensed attorney or reach out to Debt Collectors International.