Alabama debt: three years or six, depending on what the collector calls it
In Alabama, the time limit on a credit card debt depends on the label the collector puts on it in court. As an "open account" it is three years and the collector can recover only what it can prove. As an "account stated" it is six years. Alabama has no state collection act of its own.
The check is free. If a dispute letter will help, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Alabama at a glance
- Open accounts
- 3 years (6-2-37)
- Contracts, loans, accounts stated
- 6 years (6-2-34)
- Credit cards
- 3 or 6 years, depending on the claim
- Restarting the clock
- Later payments can create an account stated
- Wages exempt
- 75% (5-19-15)
- State collection law
- None; federal law applies
General information about Alabama law, with sources below. Not legal advice.
Open account or account stated
Six years for breach of contract, loans and stated or liquidated accounts (Ala. Code 6-2-34), but three years for an open or unliquidated account (6-2-37). Whether a credit card gets three years or six depends on how the claim is brought: as an open account it is three, as an account stated it is six, and Alabama courts have decided it both ways.
A creditor suing on an open account can recover only the balance it can prove, without the interest, late fees or attorney's fees a contract claim might add. Alabama courts have found card liability from use of the card plus receiving billing statements without disputing them.
Payments and the six-year clock
Later payments can be treated as acknowledging an account stated, which restarts the six-year period. That is why a small payment on an old Alabama card can matter more than it looks.
For Alabama residents with old accounts, the 3-year limit is the key date; our zombie debt guide explains why.
Limits vary a lot between states: by comparison, Delaware sets 3 years and Maine sets 6 years for similar debts.
To make a collector prove a debt in Alabama, send a debt validation letter within the dispute window.
If your letter comes from a national company such as Absolute Resolutions Investments or Afni, our collector guides explain who they are and how to dispute.
If you have been served in Alabama, our guide to responding to a debt lawsuit explains how to answer and which defenses to raise.
Garnishment and judgments in Alabama
The first 75% of a debtor's wages are exempt from garnishment (Ala. Code 5-19-15 and 6-10-7). A judgment is presumed satisfied ten years after entry or last execution and can be revived once, but not after twenty years.
Alabama has no dedicated state law on debt collection practices; the federal law is the main protection: a written dispute inside the validation period makes the collector stop until it mails verification.
Already facing a garnishment in Alabama? Our wage garnishment guide covers exemption claims, hardship and how long a garnishment lasts.
Questions people ask about debt in Alabama
What is the statute of limitations on credit card debt in Alabama?
Three years if it is brought as an open account (Ala. Code 6-2-37), six if it is brought as an account stated or contract (6-2-34). Courts have gone both ways.
What can a collector recover on an open account in Alabama?
Only the balance it can prove, without the interest, late fees or attorney's fees a contract claim might add.
Can a payment restart an Alabama debt?
Later payments can be treated as acknowledging an account stated, which restarts a six-year period.
How much of my wages can be garnished in Alabama?
Alabama exempts the first 75% of wages, so up to 25% can be taken after a judgment.
Does Alabama have its own debt collection law?
No dedicated one. The federal Fair Debt Collection Practices Act is the main protection.