Alabama · Debt collection rights · Updated Oct 2026

Debt collectors in Alabama: your rights

What debt collectors can and can't do in Alabama, how long they have to sue, how much of your pay and bank account is protected, collector licensing, where to complain and what to do if you are sued, in plain English from official sources.

6 yearsto sue on a written contract
25% (federal limit)wage garnishment limit
No statewide licensecollector license required
No general actstate debt collection law
14 daysto answer a debt lawsuit

Your federal rights

These federal rules apply in Alabama and every other state. Alabama's own law, below, can add more.

  • Who the federal law covers. The Fair Debt Collection Practices Act (FDCPA) covers debt collectors who collect for someone else and companies that buy debts, not usually the original creditor collecting its own debt (15 U.S.C. 1692a(6)). Some state laws also cover original creditors.
  • A validation notice. A collector must give you a validation notice, in its first message or within 5 days after it, with the amount, the creditor and how to dispute (15 U.S.C. 1692g(a); 12 CFR 1006.34).
  • Your right to dispute. If you dispute the debt in writing within the validation period (30 days after you get the notice), the collector must stop collecting until it mails you verification (15 U.S.C. 1692g(b); 12 CFR 1006.38).
  • When collectors can contact you. No calls before 8 a.m. or after 9 p.m. your time, or at work if your employer doesn't allow it (15 U.S.C. 1692c(a)). More than 7 calls in 7 days about one debt is presumed to break the law (12 CFR 1006.14(b)(2)).
  • Telling a collector to stop. If you tell a collector in writing to stop contacting you, it must stop, except to tell you it is ending collection or will take a specific step such as a lawsuit (15 U.S.C. 1692c(c)).
  • What collectors can't do. No threats, obscene language, false statements (for example pretending to be a lawyer or the government, or threatening arrest) and no unfair practices such as collecting fees your contract doesn't allow (15 U.S.C. 1692d, 1692e, 1692f). A collector generally can't discuss your debt with your family, neighbors or employer (15 U.S.C. 1692c(b)).

Read how to dispute a debt or stop collector calls.

Alabama law and extra protections

Alabama has no general debt collection act; the federal rules above still apply.

Extra protections
  • If the debt comes from a consumer credit deal, a creditor cannot garnish your wages before it wins a court judgment (Ala. Code § 5-19-15).
Can you sue under it?
Alabama has no general state debt collection act. You can sue a debt collector under the federal FDCPA (15 U.S.C. § 1692k).
Official text
Read the law

Old debts in Alabama

Written contracts
6 years
Open accounts and unwritten agreements
3 years
Does a payment restart the clock?
A partial payment restarts the clock only if you make it before the time limit runs out. A signed, unconditional written promise to pay also restarts it. Nothing else does, not even a spoken promise (Ala. Code § 6-2-16).
Must collectors say a debt is too old?
No state rule found that makes collectors tell you a debt is too old to sue on. Federal rule: a debt collector may not sue you or threaten to sue you on a time-barred debt (12 CFR 1006.26(b)).
Law
Ala. Code § 6-2-34(4), (5) (6 years: written promises, loans, stated accounts); § 6-2-37 (3 years: open accounts); § 6-2-16
Official text
Read the law

The time limit is the statute of limitations. Once it runs out, the debt is “time-barred”: a collector must not sue or threaten to sue you, but the debt still exists. Read more about time-barred debt.

Is my debt too old? Check Alabama's time limit

Every state limits how long a creditor or collector has to sue you over a debt. This is the statute of limitations. Choose your state, the type of debt and the date of your last payment to see the limit and an estimated end date. Nothing you type here is sent anywhere.

Credit cards count as written contracts in some states and as open accounts in others. If you are not sure, try both.

Or the date you first missed a payment, if you never paid.

Alabama: 6 years for a written contractEnter the date of your last payment to see when the time limit ends.

An estimate from our state data, not legal advice. Your state's law and your account records decide the exact start date and the type of debt.

Wage garnishment and bank accounts in Alabama

Wage limit
Federal limit applies: you keep 75% of your wages (Ala. Code § 6-10-7), and federal law also protects 30 times the federal minimum wage per week ($217.50). For consumer credit debts the state law uses the same federal formula (Ala. Code § 5-19-15).
Bank account
No separate bank account amount. Money in the bank can count toward the $7,500 personal property exemption (Ala. Code § 6-10-6).
Law
Ala. Code §§ 6-10-7, 5-19-15, 6-10-6; 15 U.S.C. § 1673

Federal benefits such as Social Security, SSI and VA benefits that were directly deposited are protected in your bank account up to two months' worth (31 CFR 212.6). A creditor usually needs a court judgment before it can garnish your wages or bank account.

Property you can keep in Alabama

Home: the statute lists $15,000, or $56,400 if you are 62 or older or have a disability (Ala. Code § 6-10-2, amended by Act 2026-203). Personal property: $7,500 of your choice, plus clothing and family items (§ 6-10-6). The State Treasurer adjusts these amounts for inflation every 3 years (§ 6-10-12), so the current numbers may be higher.

Collector licensing in Alabama

License required
No statewide license
Who licenses
No state agency licenses or regulates collection agencies. Alabama only charges collection agencies a business license tax (Ala. Code § 40-12-80).

If you are sued in Alabama

Time to answer
14 days after you are served in District Court, which includes small claims (Ala. R. Civ. P. 12(dc)). 30 days in Circuit Court (Ala. R. Civ. P. 12(a)). Check your summons.
If you don't answer
If you do not answer or do not show up, the judge can decide the case without you and enter a default judgment. You have 14 days after a small claims judgment to appeal to Circuit Court.
Court self-help
Alabama court self-help (official)

Don't ignore court papers. Read what to do if a debt collector sues you.

Where to complain in Alabama

Free help in Alabama

Good to know in Alabama

  • Alabama does not license debt collectors. Only a business license tax applies (Ala. Code § 40-12-80).
  • Your home exemption is higher if you are 62 or older or have a disability: $56,400 instead of $15,000 (Ala. Code § 6-10-2, Act 2026-203).
  • A payment made after the time limit has already run does not restart it. Only a signed, unconditional written promise does (Ala. Code § 6-2-16).

Changes in 2024–2026

Act 2026-203 amended the homestead exemption (Ala. Code § 6-10-2): $15,000, or $56,400 for people 62 or older or with a disability.

Free letters to send a collector

Dispute a debt and ask for proof (validation letter)

Within 30 days of the collector's validation notice.

Tell a collector to stop or limit contact

Stop all contact, writing only, or no calls at work.

Questions about debt collection in Alabama

What is the statute of limitations on debt in Alabama?

6 years for written contracts and 3 years for open accounts and unwritten agreements (Ala. Code § 6-2-34(4), (5) (6 years: written promises, loans, stated accounts); § 6-2-37 (3 years: open accounts); § 6-2-16).

Does paying on an old debt restart the clock in Alabama?

A partial payment restarts the clock only if you make it before the time limit runs out. A signed, unconditional written promise to pay also restarts it. Nothing else does, not even a spoken promise (Ala. Code § 6-2-16).

Must a collector tell me a debt is too old to sue on in Alabama?

No state rule found that makes collectors tell you a debt is too old to sue on. Federal rule: a debt collector may not sue you or threaten to sue you on a time-barred debt (12 CFR 1006.26(b)).

How much of my paycheck can be garnished in Alabama?

Federal limit applies: you keep 75% of your wages (Ala. Code § 6-10-7), and federal law also protects 30 times the federal minimum wage per week ($217.50). For consumer credit debts the state law uses the same federal formula (Ala. Code § 5-19-15).

How much money in a bank account is protected in Alabama?

No separate bank account amount. Money in the bank can count toward the $7,500 personal property exemption (Ala. Code § 6-10-6).

Do debt collectors need a license in Alabama?

No. No state agency licenses or regulates collection agencies. Alabama only charges collection agencies a business license tax (Ala. Code § 40-12-80).

How long do I have to answer a debt lawsuit in Alabama?

14 days after you are served in District Court, which includes small claims (Ala. R. Civ. P. 12(dc)). 30 days in Circuit Court (Ala. R. Civ. P. 12(a)). Check your summons.

Where can I complain about a debt collector in Alabama?

Alabama Attorney General, Consumer Interest Division: https://www.alabamaag.gov/consumer-complaint/ · 1-800-392-5658

Sources

Last checked: Oct 24, 2026.

Federal sources

Other states