Alabama debt statute of limitations

Alabama limitation periods by type of debt

An open or unliquidated account is 3 years (§ 6-2-37); written contracts and money owed on a loan or a stated or liquidated account are 6 years (§ 6-2-34). Which period a credit card falls under is contested, so 3 years is the shorter reading.

What the Alabama statute says

“(4) Actions founded on promises in writing not under seal; (5) Actions for the recovery of money upon a loan, upon a stated or liquidated account”
Ala. Code § 6-2-34(4)

“The following must be commenced within three years: (1) Actions to recover money due by open or unliquidated account, the time to be computed from the date of the last item of the account or from the time when, by contract or usage, the account is due;”
Ala. Code § 6-2-37(1)

“(5) Actions for the recovery of money upon a loan, upon a stated or liquidated account or for arrears of rent due upon a parol demise;”
Ala. Code § 6-2-34(5)

“(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it.”
Ala. Code § 7-2-725(1)

Does paying restart the clock in Alabama?

A partial payment made before the period runs out, or an unconditional written promise to pay, restarts it (Ala. Code § 6-2-16).

“No act, promise, or acknowledgment is sufficient to remove the bar to an action created by the provisions of this chapter, nor is such evidence of a new and continuing contract, except a partial payment, made upon the contract by the party sought to be charged before the bar is complete or an unconditional promise in writing signed by the party to be charged thereby.”
Ala. Code § 6-2-16

If a creditor wins a judgment in Alabama

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different Alabama rules take over.

How long a judgment lasts

In Alabama, a judgment is presumed satisfied if 10 years pass from entry without an execution issuing, or 10 years pass since the last execution, which puts the burden on the creditor to prove it unpaid; a judgment cannot be revived more than 20 years after entry (§ 6-9-190).

“If 10 years have elapsed from the entry of the judgment without issue of execution or if 10 years have elapsed since the date of the last execution issued, the judgment must be presumed satisfied, and the burden of proving it not satisfied is upon the plaintiff.”
Ala. Code §§ 6-9-191, 6-9-190

Wage garnishment

For a consumer credit transaction in Alabama, wages cannot be garnished before judgment, and after judgment garnishment is limited to the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum hourly wage; separately, § 6-10-7 exempts 75% of a resident employee's wages from garnishment for debts generally.

“with respect to a consumer credit transaction, the amount of unpaid earnings of the debtor subject to garnishment shall not exceed the lesser of: (1) Twenty-five percent of the debtor’s disposable earnings for that week; or (2) The amount by which the debtor’s disposable earnings for that week exceed 30 times the federal minimum hourly wage in effect when payable.”
Ala. Code § 5-19-15; see also Ala. Code § 6-10-7(a)

Small claims court

Alabama district courts place civil actions of $6,000 or less (exclusive of interest and costs) on a small claims docket; an assignee of a claim, such as a debt buyer, must be represented by a licensed attorney to file there.

“The district court shall exercise exclusive jurisdiction over all civil actions in which the matter in controversy, exclusive of interest and costs, does not exceed six thousand dollars ($6,000). These actions shall be placed on a small claims docket by each district court”
Ala. Code § 12-12-31(a)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how Alabama treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in Alabama?

3 years for credit-card debt and 6 years on a written contract, under Ala. Code § 6-2-34; § 6-2-37. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in Alabama?

A partial payment made before the period runs out, or an unconditional written promise to pay, restarts it (Ala. Code § 6-2-16).

How long does a court judgment last in Alabama?

In Alabama, a judgment is presumed satisfied if 10 years pass from entry without an execution issuing, or 10 years pass since the last execution, which puts the burden on the creditor to prove it unpaid; a judgment cannot be revived more than 20 years after entry (§ 6-9-190). (Ala. Code §§ 6-9-191, 6-9-190).

How much of my pay can be garnished in Alabama?

For a consumer credit transaction in Alabama, wages cannot be garnished before judgment, and after judgment garnishment is limited to the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum hourly wage; separately, § 6-10-7 exempts 75% of a resident employee's wages from garnishment for debts generally. (Ala. Code § 5-19-15; see also Ala. Code § 6-10-7(a)).

What if I am sued on an old debt in Alabama?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.