Collecting money judgments in Georgia is pretty typical compared to other states. But every state in which Judgment Collectors operates has its own idiosyncrasies. That’s why it pays to know what you’re doing before you start collection efforts.
Below are three things to know about collecting in Georgia. They do not apply nationwide. Remember that states regulate how many judgments can be collected. So things can differ from one state to the next.
If you are looking at collecting a money judgment in Georgia, we encourage you to contact us right away. We work on consignment, so you have nothing to lose by inquiring. In the meantime, here are those three things to know about attempting to collect a money judgment in the Peach State:
1. Garnishment Is Capped at 25%
Georgia law allows wage garnishment for the collection of outstanding money judgments. In order to do so, a judgment creditor would have to obtain a writ of garnishment from the court. That writ, delivered by the local sheriff, would compel the judgment debtor’s employer to withhold a certain amount of money from each paycheck.
Georgia caps the amount at:
- 25% of the debtor’s weekly disposable income; or
- The amount of disposable income that exceeds thirty times the federal minimum wage.
If the debtor’s weekly disposable income is less than 30 times the federal minimum wage, garnishment is not allowed. And for the record, disposable income is income the debtor does not need to pay standard bills like food, rent. etc.
2. Judgment Liens Expire
Georgia law allows judgment creditors to place judgment liens on certain types of debtor property. Similar to a construction lien, a judgment loan prevents the debtor from selling or otherwise transferring ownership of attached property without paying the judgment. But in Georgia, judgment liens can and do expire.
A Georgia judgment lien has a duration of just seven years. However, a lien can be renewed for an additional seven years if necessary. The lien must be recorded in the county in which the property is located. Therefore, if the property is in a neighboring county – in relation to the judgment itself – the judgment also needs to be recorded in that county.
3. The Homestead Exemption Applies
Certain states do not allow judgement creditors to obtain writs of execution against a debtor’s primary residence. In simple English, this means a debtor’s home cannot be sold in order to pay an outstanding judgment. But Georgia does things differently.
In Georgia, the homestead exemption is applied to money judgment collection. A debtor’s primary residence can be subjected to a writ of execution, but a certain value of the home is protected by law under the homestead exemption.
Homestead exemption values fluctuate. So rather than giving you a hard-and-fast number, let’s use an arbitrary number. If the homestead exemption were $20K at the time a rid of execution was obtained against a debtor’s primary residence, that amount of the sales proceeds would be protected from seizure. The creditor could only take the remaining amount.
We’re on Your Side
Reading these things might make you feel as though you are at a disadvantage as a judgment creditor. We want you to know that we are on your side. We are experienced Georgia judgment collectors ready to get to work on your case.
Contact us and let us take a look. If we can help, we will make an offer that you can either accept or reject. One way or the other, you will not be charged a dime unless and until we collect.