Georgia Collection Agencies: Is Your “Standard” Strategy Costing You 40% of Your Revenue?

Georgia is one of the toughest states for debt collection—not because the laws are weak, but because they are specific.

With 12.7% of Georgia adults carrying medical debt (one of the highest rates in the nation) and the state ranking 3rd highest in the U.S. for credit card delinquency, the volume of bad debt is massive. But volume doesn’t mean profit.

Most national agencies run a generic “50-state” playbook. They treat a Savannah dental bill like a Chicago utility bill. This is a fatal mistake. In Georgia, missing a single classification—like treating an “Open Account” as a “Written Contract”—can slash your legal collection window by two full years.

At NexaCollect, we don’t just “dial for dollars.” We audit your portfolio against the Official Code of Georgia (O.C.G.A.) to catch the revenue leaks that other agencies don’t even know exist.

---

The “Standard Collection” Traps in the Peach State

If your agency is just sending letters and making calls without a legal strategy behind them, they are failing you. Here is why the “generic” approach burns cash in Georgia:

1. The “Open Account” Expiration (4 Years vs. 6 Years)

• The Law: Georgia has a split Statute of Limitations. “Written Contracts” are collectible for 6 years, but “Open Accounts” expire in just 4 years.

• The Trap: Many patient registration forms or B2B invoices are legally classified as “Open Accounts” because they lack specific repayment terms.

• The Cost: If your agency sits on a 4.5-year-old debt thinking they have time, the debt is already dead. You cannot sue. You cannot collect.

• Our Solution: We run a “Statute Audit” on Day 1. We prioritize any account approaching the 48-month mark, often converting “uncollectible” paper into cash before the deadline hits.

2. The “Continuing Garnishment” Leverage

• The Law: unlike states where you must re-file for garnishment every single month, Georgia allows for a Continuing Garnishment that captures wages for 179 days (approx. 6 months) with a single filing.

• The Leverage: Most agencies wait until after a judgment to mention this. We use it during standard collections.

• Our Script: “Mr. Jones, in Georgia, a garnishment isn’t a one-time event. It takes 25% of your paycheck every week for six months. Let’s set up a voluntary $50 plan today so you don’t lose control of your income for half a year.”

3. The “Dental Gap” in Georgia

• The Reality: With 11.4% of Georgians uninsured, many families pay out-of-pocket for dental care. A standard “Deep Cleaning” (scaling and root planing) in Georgia can cost $600–$1,200.

• The Consequence: These aren’t small copays; they are major financial shocks. Patients ignore them out of fear.

• Our Solution: We don’t bully; we finance. We set up realistic payment plans that bridge the gap between the $1,200 bill and the patient’s actual disposable income, securing long-term revenue rather than a quick refusal.

---

Our “Peach State” Recovery System

We tailor our approach based on the type of debt and the location of the debtor (Metro Atlanta vs. Rural GA).

Phase 1: The “Lien & Statute” Audit (Free)

• The Strategy: We check every file for “Accident” indicators. If a medical debt is from a car crash, we verify if we are within the 75-day window to file a hospital lien. We also flag any debt nearing the 4-year “Open Account” cliff.

• Cost: Included in service.

Phase 2: The “O.C.G.A.” Compliant Demand (Flat Fee)

• The Strategy: We send demands that reference the applicable 7% legal interest rate (O.C.G.A. § 7-4-2) where appropriate. Showing a debtor that their balance is growing by law often prompts immediate payment.

• The Cost: Flat fee (approx. $15/account). You keep 100% of the revenue.

Phase 3: The “179-Day” Leverage (Contingency)

• The Strategy: For refusals, we explain the reality of Georgia’s garnishment laws. We negotiate voluntary plans that are sustainable but firm.

• The Cost: 40% contingency.

Phase 4: Magistrate Court Execution (Step 4)

• The Strategy: Georgia’s Magistrate Courts are efficient for claims up to $15,000. We handle the filing, the judgment, and the subsequent Fi.Fa. (writ of execution) to levy bank accounts or wages.

• The Cost: 50% contingency.

---

Recent Results: Real Georgia Recoveries

We don’t deal in hypotheticals. Here is how we recover revenue in the real world.

Scenario 1: The “Uninsured” Dental Patient (Savannah, GA)

• The Debt: A $2,400 bill for emergency crowns and root planing.

• The Situation: The patient had no insurance and worked in the hospitality industry. She ignored the dentist’s calls for 8 months.

• The Nexa Strategy: We knew that suing a waitress for $2,400 might yield a low garnishment. Instead, we used a “Tax Refund Intercept” strategy. We contacted her in February, right before tax season, offering a 20% discount if she paid using her refund.

• The Outcome: She paid $1,920 in a lump sum to clear the debt and protect her credit score.

Scenario 2: The “Open Account” Defense (B2B – Atlanta)

• The Debt: A $42,000 unpaid invoice for IT consulting services provided to a tech startup.

• The Situation: The debt was 4 years and 2 months old. The startup’s lawyer claimed it was an “Open Account” and therefore time-barred (expired) under the 4-year statute.

• The Nexa Strategy: We dug into the onboarding emails and found a signed “Service Agreement” PDF that the client had forgotten. We presented this to the debtor, proving it was a Written Contract (6-year statute).

• The Outcome: Realizing they were still liable for another 2 years, the startup settled for $38,000 within 10 days.

---

Frequently Asked Questions

Q: Can you collect on a debt that is 5 years old?

A: Maybe. If you have a signed written contract, the Statute of Limitations is 6 years. But if it’s an “open account” (like a credit card or simple invoice), it expired at 4 years. We audit your files to tell you which ones are still viable.

Q: Can you garnish wages in Georgia?

A: Yes. Georgia is very creditor-friendly. We can garnish up to 25% of disposable earnings. Even better, the “Continuing Garnishment” captures wages for 179 days, so we don’t have to keep re-filing and paying court fees every month.

Q: What is the rule on Medical Liens?

A: Speed is everything. Hospitals must file a lien within 75 days of discharge; physicians have 90 days. If your current agency waits 4 months to work the file, they have already lost your lien rights.