Legal Question in Credit and Debt Law in Georgia

Chargeoff is a negative term that tells potential creditors you are considered a deadbeat. It does not affect suit. The statute is six years and not three and Midland often sues.

The statute of limitations in Georgia is 6 years from the date of your last payment as per Georgia case law. So whoever "told" you was wrong and obviously not a Georgia-licensed attorney. As noted by Attorney Ashman, charge-off is just an accounting term. It means the debt has moved from the good "account receivable" side of the Home Depot ledger to the bad debt side of the ledger. It does not mean that you do not owe the debt.

Midland may or may not be able to prove its case. I have had some clients and known of others where the case has been dismissed because Midland could not prove liability. I would suggest therefore that you file an answer and demand proof of (a) your financial responsibility for the original debt; (b) Midland's purchase of the debt from Home Depot/Citi and (c) the exact amount you owe.

Who is representing Midland? I know they will generally settle for 45% of the debt - maybe a little more - do you have that much in a lump sum? The way I look at it, you can pay an attorney or you can use the money to settle. If you have the funds and feel reasonably confident its your debt, maybe settle and get it resolved. If you need time and the suit is not in small claims, then you might want to file an answer and stall for time until you can get the funds and/or try to get the lawsuit dismissed if Midland lacks proof.