Georgia: Credit, Debt & Bankruptcy

Federal laws like the FDCPA and FCRA set a floor in every state. But the details that decide real cases in Georgia come from the Official Code of Georgia and Georgia courts. That includes how long a creditor has to sue, how much of a paycheck a garnishment can reach, and what property a bankruptcy filer keeps.

Georgia is also an outlier on one point that surprises people. The state does not license or bond credit repair companies. It treats running one as a crime.

Your official Georgia resources

These are the state-level starting points most Georgians dealing with debt need:

• Georgia Attorney General's Consumer Protection Division — consumer information and the state complaint process. Consumer complaints: (404) 651-8600, or toll-free in Georgia at (800) 869-1123.
• GeorgiaLegalAid.org — a joint project of Atlanta Legal Aid Society and the Georgia Legal Services Program, with plain-language guides, self-help forms, and a legal help finder.
• Georgia Free Legal Answers — a free service where qualifying Georgians can post a civil legal question and get an answer from a volunteer attorney.
• U.S. Bankruptcy Courts — Georgia has three federal districts: Northern (Atlanta, Gainesville, Newnan, Rome), Middle (Macon, Columbus), and Southern (Augusta, Brunswick, Dublin, Savannah, Waycross, Statesboro).

If you need	Official starting point
To respond to a debt lawsuit	GeorgiaLegalAid.org
To report a collector or scam	Consumer Protection Division
Free or low-cost legal help	GeorgiaLegalAid Legal Help Finder
Bankruptcy forms and local rules	Your district's bankruptcy court site

Debt lawsuits in Georgia

When a creditor sues in Georgia, smaller claims usually go to magistrate court and larger ones to state or superior court. Whichever court it is, the person sued is served with a summons and a complaint.

GeorgiaLegalAid.org puts the core rule simply: the summons tells you how and when to respond, and a written answer has to be filed with the court. It also warns that ignoring the lawsuit hands the company an automatic win, even when the claims are false.

That answer is where denials and defenses live. GeorgiaLegalAid lists common ones: the debt is not yours, it was already paid or discharged in bankruptcy, the amount is wrong, the debt is too old to collect, or the company collecting it does not have the right to do so. Filing an answer does not end the case by itself, but it keeps a person in it and forces the creditor to prove the claim.

Missing the deadline lets the creditor ask for a default judgment. A good starting point is what to do when you're sued for a debt, alongside the debt lawsuit response checklist.

Statute of limitations basics

Georgia splits limitation periods by how the debt was documented. O.C.G.A. §9-3-24 gives six years for actions on simple contracts in writing, measured from when the amount becomes due and payable, and carves out sales of goods under Article 2 of Title 11 and negotiable instruments under Article 3.

O.C.G.A. §9-3-25 gives four years for actions on an open account, for breach of a contract not under the hand of the party being sued, or on an implied promise. It carves out sales of goods as well.

GeorgiaLegalAid.org lists an expired limitation period as one of the common reasons a debt might not be collectible, and it is generally a defense a person has to raise in the answer rather than something a court applies on its own. Read how the statute of limitations on debt works before deciding anything about an old account.

Wage garnishment and protected income

Georgia's cap is written directly into the garnishment statute. Under O.C.G.A. §18-4-5(a)(2), the maximum part of disposable earnings subject to garnishment for a work week is the lesser of 25 percent of disposable earnings for that week, or the amount by which disposable earnings exceed $217.50. For pay periods other than a week, subsection (a)(3) uses the proportionate fraction or multiple of 30 hours per week at $7.25 per hour.

If a judgment came from a private student loan, the same subsection drops the ceiling to 15 percent of disposable earnings for the week. The statute also says a garnishee only has to apply that lower rate if the summons says so conspicuously on its face or a court order in the case says so.

Two more protections sit in the statute. Subsection (b) says the cap still applies even if the garnishee gets summonses in more than one case naming the same person. Subsection (c) says an employer cannot fire someone because earnings were garnished for any one obligation.

Georgia's numbers track the federal ceiling described in the Department of Labor's Fact Sheet #30, which sets the same 25 percent and 30-times-minimum-wage test and notes that the rule producing the smaller garnishment applies. Support orders, taxes, and federal debts are different: the fact sheet explains that support orders can reach 50 or 60 percent of disposable earnings, and federal agencies can garnish up to 15 percent for defaulted federal debts including student loans. Our wage garnishment guide covers the federal baseline and how exemption claims generally work.

Bankruptcy in Georgia

Bankruptcy is federal, but it runs through local courts. Which of Georgia's three districts handles a case depends on where the filer lives. Each district posts local rules, forms, filing locations, and self-representation help: Northern, Middle, and Southern. The Northern District publishes a finding-a-lawyer page and a pro se assistance center flyer.

State law decides which exemptions a filer can use, and Georgia has opted out. O.C.G.A. §44-13-100(b) says an individual debtor domiciled in Georgia is prohibited from using the federal exemptions in 11 U.S.C. §522(d). The same subsection defines domicile for that purpose as Georgia for the 180 days before filing, or for a longer part of that 180-day window than anywhere else.

The Georgia list is in §44-13-100(a). As published in the 2024 Code, it protects an interest of up to $21,500 in property used as a residence, rising to $43,000 where title is in one of two spouses who is a debtor. It also protects $5,000 across all motor vehicles, $300 per item and $5,000 total in household goods, $500 in jewelry, $1,500 in tools of the trade, and a wildcard of $1,200 plus up to $10,000 of any unused homestead amount. Those figures were last amended in 2017, and amounts do change, so confirming the current Code text before relying on a number is worth the minute it takes.

For the big picture, start with our bankruptcy hub, the guide to Chapter 7, and filing without a lawyer. If bankruptcy is one of several options, debt relief compares them.

Free and low-cost legal help

Many Georgians qualify for free help and never use it. GeorgiaLegalAid.org publishes guides, videos, and self-help forms in English and Spanish, and its Legal Help Finder routes people to Atlanta Legal Aid Society or the Georgia Legal Services Program by location. Georgia Free Legal Answers takes civil legal questions from qualifying Georgians.

Court clerks can explain where and how to file, though they cannot give legal advice. Nationally, the LSC legal aid finder covers every state.

Common mistakes to avoid

• ✕Ignoring the lawsuit. GeorgiaLegalAid warns that failing to respond or meet court deadlines hands the company suing you an automatic win, even if the claims are false.
• ✕Assuming one statute of limitations covers every debt. Georgia runs six years on simple written contracts and four on open accounts, and which applies depends on the paperwork.
• ✕Hiring a credit repair company that operates in Georgia. Under O.C.G.A. 16-9-59 owning, operating, or being affiliated with a credit repair services organization is a criminal offense in Georgia.
• ✕Expecting Georgia to protect more of a paycheck than federal law does. The state cap tracks the federal ceiling: the lesser of 25 percent of disposable earnings or the amount above $217.50 a week.
• ✕Overlooking the lower private student loan rate. A garnishment on a private student loan judgment is capped at 15 percent, but only if the summons or a court order says so.
• ✕Paying a company for help before trying GeorgiaLegalAid.org and Georgia Free Legal Answers, which are free.

Credit repair companies in Georgia: registration, bond, and how to check

Georgia does not register or bond credit repair companies, because it does not permit them. O.C.G.A. §16-9-59, which the Georgia Attorney General's Consumer Protection Division publishes on its own site, sits in the criminal code under fraud and related offenses. Subsection (b) says a person commits the offense of operating a credit repair services organization by owning, operating, or being affiliated with one, and subsection (c) makes that a misdemeanor.

The definition is broad. Under §16-9-59(a)(2)(A), a credit repair services organization is anyone who, in return for money, sells, provides, performs, or claims they can perform services to improve a buyer's credit record, history, or rating, obtain an extension of credit for a buyer, or advise or assist with either.

The exceptions are narrow and specific. Subsection (a)(2)(B) excludes lenders authorized and supervised under state or federal law, FDIC-insured banks and savings institutions, nonprofits exempt under section 501(c)(3), licensed real estate brokers acting within that license, Georgia-licensed attorneys acting within their practice, registered broker-dealers acting within their regulators' scope, and consumer reporting agencies.

How to check a company: there is no Georgia registry to search, because there is no registration. What is worth checking is whether the business fits one of the statutory exceptions, and whether it appears in the CFPB complaint database.

How to complain: the Georgia Attorney General's Consumer Protection Division and the CFPB.

The federal floor everywhere: the Credit Repair Organizations Act (15 U.S.C. §1679) bans advance fees, requires a written contract, and gives a three-business-day right to cancel. Accurate, timely items cannot be removed by anyone. How to vet an offer is on credit repair services.

Finding a bankruptcy attorney in Georgia

Georgia has three federal bankruptcy districts — Northern, Middle, and Southern — and a case is filed in the one serving the county where the filer lives. The Southern District alone covers 43 counties from six locations, so confirming the right division matters before filing anything.

Georgia works differently from most states on referrals. The State Bar of Georgia's Find a Lawyer page says plainly that the Bar is not able to refer clients to lawyers directly. Instead it offers an online directory, a list of local and voluntary bar associations that do make referrals, and a published list of lawyer referral services that have complied with Bar Rule 7.3(c)(2).

If income is limited, the LSC legal aid locator finds the federally funded program for any Georgia address, and the NACBA member directory lists consumer bankruptcy attorneys by ZIP code. The ordered path, what a consultation costs, and the questions to ask before paying are on how to find a bankruptcy attorney near you.

Frequently asked questions

How much of my paycheck can be garnished in Georgia?

Under O.C.G.A. §18-4-5(a)(2), the maximum for a work week is the lesser of 25 percent of disposable earnings for that week or the amount by which disposable earnings exceed $217.50. If the judgment arose from a private student loan, the ceiling drops to 15 percent, though the garnishee only has to apply that lower rate if the summons says so conspicuously or a court order in the case says so.

What is Georgia's statute of limitations on credit card debt?

Georgia splits it by paperwork: O.C.G.A. §9-3-24 gives six years for actions on simple contracts in writing, measured from when the amount becomes due and payable, and O.C.G.A. §9-3-25 gives four years for actions on an open account or an implied promise. Which one applies to a specific card depends on the documents behind the account, so it is worth checking rather than assuming.

Is credit repair illegal in Georgia?

Georgia treats it as a criminal matter rather than a licensed business. O.C.G.A. §16-9-59(b) says a person commits the offense of operating a credit repair services organization by owning, operating, or being affiliated with one, and subsection (c) makes that a misdemeanor. The statute carves out supervised lenders, insured banks, 501(c)(3) nonprofits, licensed real estate brokers, Georgia-licensed attorneys acting within their practice, registered broker-dealers, and consumer reporting agencies.

Do credit repair companies have to be registered in Georgia?

No, because Georgia does not have a registration or bonding scheme for them. O.C.G.A. §16-9-59 places credit repair services organizations in the criminal code instead, so there is no Georgia registry to search. The federal CROA rules still apply to anyone selling credit repair anywhere, and complaints go to the Georgia Attorney General's Consumer Protection Division or the CFPB.

Can I lose my job over a garnishment in Georgia?

O.C.G.A. §18-4-5(c) says no employer shall discharge an employee because that employee's earnings have been garnished for any one obligation, even if more than one summons is served for that same obligation. The federal Consumer Credit Protection Act has a parallel protection for garnishment tied to a single debt.

How long do I have to respond to a debt lawsuit in Georgia?

This guide does not state a single statewide number of days, because the summons a person actually received is what controls. GeorgiaLegalAid.org explains that the summons tells you how and when to respond and that a written answer has to be filed with the court, and that ignoring the case hands the company an automatic win.

Does Georgia let bankruptcy filers use the federal exemptions?

No. O.C.G.A. §44-13-100(b) prohibits an individual debtor domiciled in Georgia from using the federal exemptions in 11 U.S.C. §522(d), so Georgia filers use the state list in subsection (a). Domicile for that purpose means Georgia for the 180 days before filing, or for a longer part of that window than anywhere else.

What is the Georgia homestead exemption in bankruptcy?

As published in the 2024 Code, O.C.G.A. §44-13-100(a)(1) protects an interest of up to $21,500 in property used as a residence, rising to $43,000 where title is in one of two spouses who is a debtor. Subsection (a)(6) also lets up to $10,000 of an unused homestead amount move into the wildcard exemption. Those figures were last amended in 2017 and can change, so the current Code text is worth confirming.

Where do I find legal aid in Georgia?

GeorgiaLegalAid.org is the statewide portal, run jointly by Atlanta Legal Aid Society and the Georgia Legal Services Program, with guides, videos, and self-help forms in English and Spanish. Its Legal Help Finder routes people to the right program by location, and Georgia Free Legal Answers takes civil legal questions from qualifying Georgians.

When to talk to a professional