Georgia Credit Card Debt: Statute of Limitations & Laws (2026)

Georgia’s 6-year statute of limitations under OCGA § 9-3-24

The Official Code of Georgia Annotated § 9-3-24 sets a 6-year statute of limitations on “all actions upon simple contracts in writing.” Georgia appellate courts have consistently held that credit card agreements qualify as simple written contracts because the cardholder agreement is a signed or e-signed document setting out the essential terms.

OCGA § 9-3-25 sets a 4-year statute for oral contracts and open accounts. Some debt buyers in Georgia have argued credit card debts should fall under the 4-year open-account rule, but the Georgia Court of Appeals in Hill v. American Express and similar cases has rejected that framing for accounts with a written cardholder agreement.

The 6-year clock starts on the date of the last payment or last written acknowledgment of the debt. Charge-off does not reset the clock. Selling the debt to a debt buyer does not reset the clock. What can restart it:

• A signed payment plan or settlement agreement
• A written admission that the debt is owed
• A partial payment that the creditor properly documents as applied to the account

A time-barred Georgia credit card debt is not extinguished automatically. You must raise the statute of limitations as an affirmative defense in your answer to the lawsuit. Failure to raise the defense in your answer waives it.

Wage garnishment under OCGA § 18-4

Georgia wage garnishment procedure runs through OCGA Title 18 Chapter 4. The federal 25% cap under 15 U.S.C. § 1673 applies. Georgia procedure requires:

1. The creditor wins a money judgment in state court
2. The creditor files a garnishment summons in the county where the employer is located
3. The employer serves the employee with a copy of the summons and a claim-of-exemption form
4. The employee has 15 days to file a claim of exemption with the court
5. If unchallenged, the employer must withhold up to 25% of disposable earnings each pay period and remit to the court

Georgia’s continuous garnishment statute under OCGA § 18-4-13 allows a single garnishment summons to capture wages for up to 1095 days (about 3 years), reducing the creditor’s procedural cost.

The 30× federal minimum wage floor ($217.50/week) means workers earning less than that in disposable income are fully exempt. There is no Georgia-specific head-of-household exemption analogous to Florida Statute § 222.11.

Georgia’s $21,500 homestead exemption

Georgia is an “opt-out” state under 11 U.S.C. § 522(b)(2), meaning Georgia residents cannot use the federal bankruptcy exemptions. The state exemptions in OCGA § 44-13-100 apply in both state collection actions and Chapter 7 bankruptcy.

Key Georgia exemptions for credit card debt:

• Homestead: $21,500 of equity per filer (OCGA § 44-13-100(a)(1)). Joint owners can double to $43,000.
• Motor vehicle: $5,000 (OCGA § 44-13-100(a)(3))
• Household goods: $5,000 aggregate, with a $300 per item cap (OCGA § 44-13-100(a)(4))
• Wildcard: $1,200 plus up to $10,000 of any unused homestead (OCGA § 44-13-100(a)(6))
• Retirement accounts: ERISA-qualified plans fully exempt; IRA exemption limited per Georgia case law

Equity above the homestead exemption is reachable by a judgment creditor through a writ of fieri facias and a sheriff’s sale.

Georgia garnishment math vs settlement math

The pillar payoff calculator compares paths for a Georgia debtor facing a credit card judgment.

Scenario 1: $10,000 balance, single Georgia filer, $900/week disposable

Garnishment caps at 25% of $900 = $225/week, or $11,700/year. The original $10,000 grows with post-judgment interest at 7.0% (the current rate under OCGA § 7-4-12), so total collection is closer to $13,500 over 14 to 16 months of continuous garnishment. Settling at 35% costs $3,500 paid in 90 days. Settlement saves about $10,000 vs full garnishment.

Scenario 2: $10,000 balance, Georgia worker at $215/week disposable

The 30× federal minimum wage floor ($217.50/week) means weekly disposable below that amount is fully exempt from private credit card garnishment under federal law. This Georgia worker has no garnishable wages. The creditor’s options are bank levy (subject to exemption claims for direct-deposited federal benefits under 31 CFR Part 212) or waiting for income to rise.

Scenario 3: $10,000 balance, Georgia retiree, Social Security only

Social Security is fully exempt under 42 U.S.C. § 407. The 6-year SOL under OCGA § 9-3-24 starts running from the date of last payment. After 6 years, raising the SOL as a defense bars the lawsuit. Many Georgia retirees on fixed income choose to remain functionally judgment-proof rather than pay or file bankruptcy.

Georgia vs Southeast neighbors

Georgia and Alabama share the 6-year SOL window. Florida is shorter at 5 years but adds the head-of-household shield. Tennessee matches Georgia’s SOL but has a much weaker homestead ($5,000 for single filers).

Filing the Georgia claim of exemption

When a garnishment summons hits your Georgia employer, you have 15 days from service to file the Claim of Exemption with the court. The procedure under OCGA § 18-4-15:

1. Obtain the form from the issuing court clerk. Each Georgia superior or state court has its own version. The Georgia Legal Aid network publishes a state-wide template at GeorgiaLegalAid.org.

2. List your exemptions. Check every applicable box: Social Security, Veterans’ benefits, unemployment, workers’ comp, retirement, or the federal 30× minimum wage floor if your disposable weekly earnings are at or under $217.50.

3. File and serve. File with the court clerk and serve the creditor’s attorney by certified mail or hand delivery. The court schedules a hearing within 10 to 30 days.

4. Hearing. Bring pay stubs, bank statements, and proof of any exempt income source. The judge can order the garnishment terminated, modified, or continued. Funds withheld between garnishment service and the hearing are returned if the exemption is granted.

Missing the 15-day window does not extinguish the underlying exemption, but it allows the garnishment to continue while you re-file. The longer you wait, the more wages go to the creditor.

Georgia bank levy procedure

A Georgia creditor with a judgment can serve a garnishment summons on a bank holding the debtor’s account under OCGA § 18-4-3. The bank must freeze the account up to the judgment amount and hold for the deposition period. Automatic protections:

• Federal benefits in the account: 31 CFR Part 212 requires the bank to perform a 2-month lookback on direct-deposited Social Security, SSDI, SSI, VA, federal retirement, and federal student aid. That protected amount is released within 2 business days.
• State exemptions can be claimed by filing a traverse to the garnishment summons within the 15-day window. Funds traceable to exempt sources (workers’ comp settlement, unemployment, etc.) are protected.

If the bank fails to perform the 31 CFR Part 212 lookback, you can file a complaint with the bank’s compliance officer and with the Consumer Financial Protection Bureau under 12 CFR 1024.

The Georgia Fair Business Practices Act

The Georgia Fair Business Practices Act, codified at OCGA § 10-1-390 and following, gives consumers a private right of action against debt collectors who use unfair or deceptive practices. Common Georgia FBPA claims:

• Threatening wage garnishment without a judgment in hand
• Misrepresenting the SOL status of a debt
• Calling at prohibited hours (before 8 a.m. or after 9 p.m.)
• Attempting to collect a discharged or time-barred debt while implying legal action

Statutory damages run up to $1,000 plus actual damages plus attorney’s fees. Complaints go to the Georgia Department of Law Consumer Protection Division.

When Chapter 7 bankruptcy makes sense in Georgia

Georgia’s Chapter 7 means test uses the state median income figure published by the U.S. Trustee Program. For 2026 a single filer earning under approximately $60,000 generally qualifies. Filing triggers the automatic stay under 11 U.S.C. § 362, immediately halting any garnishment or bank levy. Most credit card debt is dischargeable.

The trade-off is that Georgia’s state exemptions ($21,500 homestead, $5,000 vehicle) apply because Georgia opted out of federal exemptions. Filers with home equity above $21,500 (or $43,000 jointly) may face a partial sale or be steered into Chapter 13.

Chapter 13 makes sense when income is too high for Chapter 7, when you want to keep non-exempt assets, or when you need to catch up on a mortgage or vehicle loan. Georgia Chapter 13 plans typically run 3 to 5 years.

Authoritative Georgia sources

• OCGA § 9-3-24, simple written contracts statute of limitations
• OCGA Title 18 Chapter 4, garnishment procedure
• OCGA § 44-13-100, bankruptcy and collection exemptions
• Georgia Department of Law consumer complaint portal
• Georgia Legal Aid self-help center
• Georgia Judicial Branch, garnishment guidance

Sibling state pages

• Florida credit card debt laws
• Alabama credit card debt laws
• Tennessee credit card debt laws
• South Carolina credit card debt laws
• North Carolina credit card debt laws

Related tools

• Credit card payoff calculator for settlement vs garnishment modeling
• Debt management plan calculator
• Can credit card debt garnish your wages?

Frequently asked questions

What is the statute of limitations on credit card debt in Georgia?

Six years from the date of last payment or written acknowledgment, under Official Code of Georgia Annotated § 9-3-24 which governs actions on simple written contracts. Credit card agreements are simple written contracts under Georgia case law. Oral contract debts are subject to a 4-year SOL under OCGA § 9-3-25, but credit card debts almost always involve signed or e-signed agreements that qualify as written contracts.

Can credit card companies garnish wages in Georgia?

Yes, after a court judgment. Georgia follows the federal cap of 25% of disposable earnings under 15 U.S.C. § 1673, with the alternative floor of the amount by which weekly disposable earnings exceed 30 times the federal minimum wage ($217.50). Georgia procedure under OCGA § 18-4 requires the creditor to file a garnishment summons in the county where the employer is located. Wages are garnished until the judgment is paid in full.

Is my Georgia homestead protected from credit card debt?

Partially. Georgia’s homestead exemption under OCGA § 44-13-100(a)(1) is $21,500 of equity for a single filer, or $43,000 for joint filers who own the property together. Equity above the exemption is reachable by creditors in a forced sale. Georgia does NOT permit residents to use the federal bankruptcy exemptions, so the state cap applies in both state collection actions and Chapter 7 bankruptcy.

Does Georgia recognize head-of-household exemption for wages?

No, Georgia does not have a separate head-of-household wage exemption analogous to Florida’s. The federal 25% cap and the 30× federal minimum wage floor are the only wage protections in Georgia for credit card judgments. Workers earning less than $217.50/week in disposable income are fully exempt from garnishment under federal law.

How long can a judgment be enforced in Georgia?

Seven years initially under OCGA § 9-12-60, renewable by the creditor by filing a renewal action before the 7-year window closes. A renewed judgment runs for another 7 years. Some Georgia judgments can be enforced for as long as 20 years if periodically renewed. The judgment continues to accrue post-judgment interest at the rate set under OCGA § 7-4-12.