Legal Question in Credit and Debt Law in Georgia

I am not sure why you waited this long, and if you wait a bit longer, you will forever lose your right to collect based on the statute of limitations. Many debts are uncollectable. He may have no money or assets (that is why individuals should NEVER loan money they do not expect to lose). Additionally he may go bankrupt. Do what you should have done in 2011 and hire a lawyer, immediately. That lawyer will need to be in the state where he is. The lawyer will determine if the debt is collectable. In some cases you will have to pay the lawyer by the hour, but you should try to find a lawyer that will work for a percentage of recovery (probably a third). be aware you may or may not collect.

The only way to force it is to sue, get a judgment and garnish accounts and paychecks. If he is out of state and has no assets here, that'll not be cheap and he may really have nothing to get.

I agree with Attorneys Riddle and Ashman. First, where does the debtor live? You indicated he is out of state. Most states have wage garnishment but some do not (NC, SC, PA & TX). So it makes a difference. What assets does he have? Does he even work? Have a bank account?

Even if the debt cannot be collected on today, getting a judgment may have value depending on the debtor's circumstances. How old is he? What does he do? Does he have the ability to acquire more assets in the future? Is it likely that he would need future credit (to buy a home or a car)? The answers to this would dictate what you do. For example, if a 93 year old person lived in a nursing home and only got SS income and had no assets, it would make zero sense to go after the person. However, someone who is 45, works and will be needing credit presents a totally different picture. Getting a judgment against such a person means that the judgment will be listed on their credit report. Judgments last for a long time unless revived (its 7 years in GA but it can be revived; in some states, its 10 years and they can be revived; and in other states it can be as long as 20 years). And a judgment can be transferred and registered in any state where the person moves, works or owns property. With a judgment on their credit report, the debtor will not be able to buy a home as no mortgage lender is going to issue a loan if there is an outstanding judgment. Cars can be bought, but at high interest rates and judgments attach to a debtor's assets so that they cannot be disposed of. So a nice chunk of change is owed here and I would think it would be worth it for you to pursue litigation.

Some things about this are puzzling though and you will have to have this reviewed by an attorney. You say that you created a contract. Fine and dandy. Did the debtor sign it? What did you do when the funds were not repaid?

Phone discussions do not count. DId you write a demand letter to the debtor? If not, it could be that the statute has not even begun to run (this would depend on where the loan was made and what the law of the state is in regard to such loans). You also indicate that the loan was issued in 2010 and paid off. So how can it be that money was owed? Was a new loan made?

Getting back to alleged documents you have - do you have something in writing signed by the debtor acknowledging this debt? Were any part payments made on the debt? If so, when? Did the loan documents indicate that they would be governed by the law of a particular state or did they indicate that any lawsuits could only be brought in a particular state?

Where is the debtor now living? Unless your loan documents provide that any lawsuits will be brought in GA, I would find a general civil litigation/contracts lawyer who practices in the county/state where the debtor now lives. I would try to do a preliminary asset search on the person using whatever resources are free/low cost to find out if the person works, has a car or owns land. I would pay the lawyer to review all of your information and send a demand letter followed up by a lawsuit and hope that you can recover a judgment. If the debtor's state allows wage garnishment and there are no exemptions for this, then I would also pay the lawyer to start trying to collect.

Attorney Ashman is correct that some lawyers may work for a percentage of recovery, but they may only be willing to do this in cases where there are assets to be seized or wages garnished. If the guy rents, owns nothing and gets exempt income then its going to be hard to collect anything at least at the moment. As I said though, getting the judgment has value even if you cannot immediately collect.