Sued for Debt in Georgia? Here's What to Do Next

30 days from service to file your Answer.

6 years for written contracts. 4 years for oral contracts and open accounts.

Yes. Federal garnishment limits apply — up to 25% of disposable earnings.

Magistrate court handles cases up to $15,000. Many debt collection lawsuits are filed in state court.

Georgia's statute of limitations for a written contract is six years under O.C.G.A. § 9-3-24, and four years for an open account or unwritten contract under O.C.G.A. § 9-3-25. Most cardholder agreements are written contracts, so courts often apply the six-year limit, although some Georgia courts have applied the four-year open-account limit to credit-card debt. If you are sued after the limitations period has run, statute of limitations is an affirmative defense and you must plead it in your answer or you waive it. Partial payment or a written acknowledgment can restart the clock under O.C.G.A. § 9-3-110 and § 9-3-112, so be careful what you say to a collector. Filing suit on a time-barred debt can also support a counterclaim under the federal FDCPA at 15 U.S.C. § 1692e for misrepresenting the legal status of the debt.

Georgia follows the federal Consumer Credit Protection Act at 15 U.S.C. § 1673 for ordinary consumer-debt garnishments. The creditor can take the lesser of 25 percent of your weekly disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage. Disposable earnings means gross pay minus required deductions, not including voluntary items like 401(k) contributions. Garnishments for child support, taxes, and student loans follow different and higher percentages under federal law and O.C.G.A. § 18-4-5. Social Security, SSI, VA benefits, unemployment, workers compensation, and most retirement income are fully exempt under federal law and O.C.G.A. § 18-4-6. After service, you have 30 days under O.C.G.A. § 18-4-15 to file a traverse or claim of exemption.

Generally no, with very limited exceptions. The Georgia constitution at art. VI, § 2, para. VI requires civil suits against Georgia residents to be filed in the county where the defendant resides. The federal FDCPA at 15 U.S.C. § 1692i also requires third-party collectors to sue in the county where the consumer signed the contract or where the consumer currently lives. If a collector files in the wrong county, you can file a motion to transfer venue under O.C.G.A. § 9-10-31 and a counterclaim under the FDCPA for improper venue. The most common improper-venue scenario is when a collector buys a debt and sues based on a stale address; if you can show you no longer live in that county and did not sign the contract there, you have a clear venue defense.

If you fail to respond to a magistrate court complaint within 30 days under O.C.G.A. § 15-10-43, the court will enter a default judgment against you for the amount claimed plus court costs and post-judgment interest at 7.25 percent under O.C.G.A. § 7-4-12.1 (set annually). Once the creditor has a judgment, they can garnish wages, levy bank accounts, place liens on real estate, and renew the judgment every seven years under O.C.G.A. § 9-12-60. The right answer is to file a written answer denying that you owe the debt and asserting affirmative defenses such as statute of limitations under O.C.G.A. § 9-3-24, lack of standing if a debt buyer cannot produce the chain of assignment, and any FDCPA or Fair Business Practices Act counterclaim. Default can sometimes be set aside under O.C.G.A. § 9-11-55 if you act quickly and show excusable neglect.

Yes, but you have to use it correctly. The FBPA at O.C.G.A. § 10-1-393 makes unfair or deceptive practices in consumer transactions illegal, and Georgia courts have applied it to abusive collection conduct. To bring an FBPA claim, you must first send the collector a written demand under O.C.G.A. § 10-1-399(b) at least 30 days before filing suit, describing the unfair acts and the relief sought. If the collector does not respond reasonably, you can sue for actual damages, and the court may award treble damages plus attorney fees under O.C.G.A. § 10-1-399. The FBPA can be combined with a federal FDCPA claim under 15 U.S.C. § 1692k, which has no pre-suit demand requirement and provides up to $1,000 in statutory damages plus actual damages and attorney fees.