Legal Question in Credit and Debt Law in Georgia

The statute of limitations in Georgia for a credit card debt is 6 years. So telling me a debt is several years old says nothing. It does not matter unless it has been 6 or more years since the wife last paid on the account. If so, then your wife needs to see a lawyer now.

There is no jail time . For what? Not paying a debt is not a crime. However, with a judgment a creditor can garnish wages or seize other assets owned free and clear.

Your wife would do well to at least get a consult with an attorney to review her situation.

I have not seen the papers but I assume the lawsuit is for less than $15,000 and is in small claims court. If so, then there is no point in answering if your wife has no statute of limitations or other defenses. If she does answer, she would be required to show up at a hearing and defend; otherwise a judgment would be entered against her. If she does nothing a judgment will be entered against her.

A writ of execution called a fieri facias (FiFa) will issue after the judgment is final. This will allow the sheriff to levy any bank account belonging to your wife, to seize any assets she owns free and clear or garnish her wages. But I don't know what your wife has or what is at risk.

Credit card debts can be settled for less than what is owed. It will depend on how much is being sought and who is doing the suing. Generally creditors will accept anywhere from 40% to 80% of the debt.

I give free email consults. If your wife is interested in discussing this in a non-bankruptcy non-litigation context, she can email me at [email protected].