Sunday, September 5, 2010

Georgia Law on Collection of Money Owed for Small Engine Repairs

When a person agrees to pay someone to repair his vehicle and then fails to make the payment, the debtor may face a number of collection actions initiated by the creditor. This is because the payment constitutes a legal financial obligation, regardless of whether the person agreed to the payment in writing or verbally. In Georgia, a number of different laws affect the collection of this money.

Small Engine Repair Debt

    In Georgia, debts are categorized into various types. A bill from a small engine repair is a written contract debt. If the person does not pay the mechanic the money he owes, the mechanic has the right to take the person to court for breach of contract. If the mechanic wins, then the judge will likely certify that the debt is a legal obligation and specify an amount -- known as a civil judgment -- the debtor owes.

Statute of Limitations

    In Georgia, a debt is only enforceable for a set amount of time. While a person who incurs a debt is, technically, obligated to pay the money forever, there is a statute of limitations on the time in which the creditor can sue for the money in court. In Georgia, for a written contract, the statute of limitations is six years from the date on which payment was due but was not made.

Debt Collection Methods

    There are a number of options for debt collection available to Georgia debt collectors, most of which can only be implemented if the creditor has been awarded a civil judgment. In Georgia, a debt collector can apply to a judge to have the debtor's wages garnished. In addition, a creditor can seek to have an individual's bank account seized. However, both of these actions can only be pursued with the express permission of a judge.

Considerations

    Every lawsuit is different, meaning that a case involving money owed for small engine repairs may have idiosyncrasies that affect what laws are applicable to it. To be sure of the laws that apply, a person involved in the case must consult an attorney, preferably one with experience in contract law. In addition, even if a creditor wins a civil judgment, the debtor may be shielded from certain collection actions, such as bank account seizure and garnishment, by federal law, particularly if he has little income.

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