What is the Statute of Limitations for the legal collection of debt?
The statute of limitations for your creditors to bring a lawsuit to collect on an indebtedness in Georgia is generally six years from the date the debt became due and payable or the date you last made a payment. If you make a payment on an older debt it may re-start the statue of limitaions. If a lawsuit is filed against you and you do not answer and raise the statute of limitations, this defense to payment will be waived. 19. What about repayments of debts to relatives? Payments made to any relatives within twelve (12) months prior to the filing your bankruptcy case are recoverable by the Trustee in your case. If you repaid money during that period to your sister, they will have to pay back that money to your Trustee who will then distribute it equally to all your creditors. This insider preference is designed to prevent debtors from preferring one creditor over another. 20. Taxes You can discharge debts for federal income taxes in Chapter 7 bankruptcy only if you meet all of these fi
