Did you know that Georgia allows credit card debt to chase you around for SIX years after you’ve defaulted on the debt?
Most other states view credit card debt as an “open account” and assign a shorter statute of limitations (Georgia’s open account statute of limitations is 4 years).
But in 2008, Georgia’s Appeals court ruled in Amex v. Hill (289 Ga. App. 576) that credit card debt is not an open account. Credit card debt is apparently a contract, and therefore subject to the six year statute of limitations. The Court of Appeals decision was appealed to the State Supreme Court, but the State Supreme Court declined to hear the case. So this is the law of our land…
Why does this matter to you?
Sometimes consumers realize they’ve got bad debt, and hope to wait out the creditors and collection agencies. If this is you, please understand that your debt can get you up to six years past default. (Suing you once the statute of limitations has expired amounts to suing you for Zombie Debt.)
By federal law, your debt can be reported on your credit reports for up to 7 years. If you outlast your creditors’ attempts to sue you, be sure to demand that they remove the bad marks from your credit file.
If your creditors get to you before the six years is up and file suit against you, guess what? You get to defend yourself in the State Court of your county of residence. Yes there are tactics and defenses, to minimize your exposure, and yes I am happy to talk to you about defending these matters.
If Big Credit is “merely” harassing you in advance of suing you, call me. We need to talk about violations of the Fair Debt Collection Practices Act. And yes, you may be able to settle with them for pennies on the dollar. (But please google how to do it yourself, or call me to get started–don’t give your hard earned money to charlatan debt settlement companies).
But if six years sounds like an awfully long time to you (as it does to me) let’s talk. Together we will figure out if the debt that’s hounding is enough to warrant a serious conversations about your options in the bankruptcy court.
Would you like your fresh start now, or much much later?