Legal Question in Credit and Debt Law in Georgia

It depends. Did the lender or its assignee sue you and obtain a judgment?

The statute of limitations has run (most debts are 6 years in Georgia, although some are 4 - it does not matter here as we are well outside of it). The problem is that statute of limitations is only a defense that can be asserted in court if you are sued and if you fail to assert it then its waived and a judgment can be entered. This happened to an NC client of mine who ignored a lawsuit like this, had no reasonable excuse for doing so and now has a judgment on what would otherwise be a time-barred debt.

So if you have not been sued, a creditor or its assignee can still try to collect the debt. Once a debt always a debt - it never goes away. However, that does not mean you have to pay it. You can send what I call a "drop dead" letter if its with a debt collector. The debt also has fallen off your credit report by now so it cannot be put on our credit report and if the date of the debt is illegally refreshed it can be disputed.

This all applies BEFORE any lawsuit/judgment. If you are going to be sued or have just now been sued, don't post here but get yourself to a litigation attorney who can file an answer on your behalf and get this lawsuit dismissed. If a judgment has already been entered, statute of limitations for claims/actions no longer applies. Judgments in GA last for 7 years and can be renewed for an additional 7 years but there is kind of a grace period of 3 years to bring the renewal so its more like 10 years and it can be renewed. And then renewed again.

So what is the status here? Was a judgment entered or not? If a judgment was entered then was the judgment timely renewed? If so, it can be enforced. If not, then it cannot be. If the judgment is enforceable, then wages are subject to garnishment at a rate of 25% of disposable pay (gross pay minus required deductions) but it depends how much you make and how often you are paid. Garnishments are good for 179 days and can be renewed any number of times. Anything below $217.50 per week is not garnishable. Things like Social Security or unemployment also are not garnishable for a debt of this type.

A creditor with a valid enforceable judgment can also do things like seize any assets owned free and clear by you or levy on any bank accoiunt which you have solely or with someone else. So if you have a judgment, I suggest that you consider either resolving it by way of paying/settling or you talk to a lawyer about filing bankruptcy, depending on the size of any judgment and other circumstances.