Alabama Debt Collection Laws

How long a creditor can sue you in Alabama, how much of your paycheck is protected, and where to get help.

Last updated September 24, 2026 · Every rule linked to the Alabama or federal law it comes from

What's new: First published: statute limits, wage garnishment rules and collector protections, each checked against the linked law.

Quick facts Time limits Wage garnishment What collectors can't do What to do Free help Sources

Alabama debt rules at a glance

The key numbers. Details and the exact law are below.

Written promises, loans, stated accounts

6 years

Ala. Code § 6-2-34 (mirror)

Wage garnishment

Max 25%

The lesser of 25% of weekly disposable earnings or the amount above 30x the federal minimum wage ($217.50). Alabama court form C-24A/C

Claim of exemption

At least $1,000 per paycheck

You can file a claim of exemption asking the court to protect at least $1,000 of each paycheck. Alabama court form PS-20

Reviewer credit coming soon. This page was researched and checked against the linked primary sources by the Financialist editorial team.

How long can a creditor sue you in Alabama?

6 years for most debts

Actions on promises in writing not under seal, loans, stated or liquidated accounts, and other simple contracts not listed elsewhere must be started within six years.

Ala. Code § 6-2-34 · read the law

How much of your paycheck can be garnished?

No more than 25% of your pay

Alabama exempts 75% of wages from garnishment for debts and judgments, and the Alabama court system's garnishment form applies the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum wage. Nothing can be taken if you take home less than $217.50 a week.

Ala. Code § 6-10-7 · read the law · court form C-24A/C

Consumer loans, credit sales and leases

Alabama's consumer credit law sets its own cap for these debts. The statute text we found says 25%, but the court's form lists 20% for consumer debts. If your judgment is for a consumer loan, credit sale or lease, ask the court clerk or Legal Services Alabama which cap is being applied.

Ala. Code § 5-19-15 · read the law · court form C-24A/C

You can ask to protect $1,000 a paycheck

If you take home less than $1,000 per paycheck and the judgment is on a debt or contract, you can file a claim of exemption under the Alabama Constitution. The creditor then has 15 days to contest it.

Alabama court form PS-20 · Legal Services Alabama

What debt collectors can't do in Alabama

Federal debt collection rules

Debt collectors everywhere must follow the federal Fair Debt Collection Practices Act and the CFPB's Regulation F. A collector may not sue or threaten to sue you on a debt that is past the time limit.

12 CFR § 1006.26 · read the rule

Collectors can't sue on expired debt

Under the federal debt collection rule (Regulation F), a debt collector must not bring or threaten to bring a lawsuit to collect a time-barred debt, meaning a debt whose statute of limitations has run out.

12 CFR § 1006.26(b) · read the rule

When a debt collector contacts you

A practical order of operations.

Don't pay or promise anything on the first call

Ask for the collector's name, company, mailing address and the amount they claim. In some states a payment or promise can affect an old debt, so check the rules above first.

Ask for validation in writing

Federal law gives you the right to a validation notice listing the debt, the creditor and your right to dispute. Dispute in writing within the validation period if the debt isn't yours or the amount is wrong.

Check the date of your last payment

Compare it with your state's time limit above. If the time limit has passed, a collector may not sue or threaten to sue you.

Never ignore a lawsuit

If you are served with court papers, respond by the deadline, even on an old debt. Being out of time is usually a defense you have to raise in court. Legal aid can help.

Report abuse

Threats, harassment and calls at odd hours break federal and state law. File complaints with your state regulator and the CFPB (links below).

Free help in Alabama

Government complaint lines and nonprofit counseling. Be wary of anyone who charges upfront fees to settle debt.

Alabama Attorney General - Consumer Interest Division

File a complaint: alabamaag.gov

Legal Services Alabama

Free help with garnishment: alabamalegalhelp.org

CFPB complaint

File a complaint about a debt collector with the Consumer Financial Protection Bureau: consumerfinance.gov/complaint

Nonprofit credit counseling

Find an NFCC member agency: NFCC agency finder. If you are considering bankruptcy, use an agency on the U.S. Trustee approved list.

Links checked September 24, 2026.

Sources

Every rule on this page comes from these laws and official resources, checked on September 24, 2026. Read the current text before you act.

Primary sources

Debt collection laws in other states →

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