Alabama Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside Alabama's Statutes Of Limitations. Alabama phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The Alabama Fair Debt Collection Consumer Practices Guide summarizes Alabama's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
Alabama Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under Alabama’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under Alabama Debt Exemption Law!
Alabama Code § 6-10-11.
Alabama has opted out of federal bankruptcy exemption
Wages: Alabama Code §§ 5-19-15, 6-10-7, -120.
Scope: Wages, salaries, or other compensation of laborers or employees, residents of Alabama, for personal services.
Amount: Similar to federal exemptions for consumer loans, consumer credit sales and consumer leases; for all other debts 75% of weekly disposable income is exempt. For consumer loans, disposable earnings are those left after legally required deductions. Disposable earnings do not include voluntary "periodic payments pursuant to a pension, retirement or disability program."
Survival after payment/deposit: Not specified in exemption statute.
Waiver: Permitted. Waiver must be in written form.
Homestead: Alabama Const. art. X, §§ 205, 206; Alabama Code §§ 6•10•2, •4, -20, -41, -120, and -122.
Amount: $5000 per individual not exceeding 160 acres is exempt, subject to certain liens. Mobile home is definitively included. If husband and wife jointly own homestead, each may claim the exemption separately "to the same extent and value as an unmarried individual." Exemption available whether debtor owns a fee or less estate, whether in common or in severalty.
Procedural requirements: Any resident may file sworn declaration with office of probate judge in county where property located. (This is not essential to claim of exemption; other procedure exists to claim exemptions after levy.)
Special provisions: Homestead exemption survives if homeowner dies, during the lifetime of the surviving spouse and the minority of any children. If you are married the married individual’s mortgage, deed
or other assignation of homestead requires signature of spouse, made before an officer authorized to take acknowledgment of deeds. Once a homestead declaration is filed, temporary absence or leasing of homestead will not eliminate the exemption.
Waiver: Yes, by separate instrument in writing. Signature of spouse, if any, required, and must be made before officer authorized to take acknowledgment of deeds.
Tangible personal property: Alabama Const. art. X, § 204; Alabama Code §§ 6-10-5, -6, -120, -121, and -126.
Household goods: $3000. All personal property, except for wages.
Motor vehicles: See above.
Tools of trade: See above.
Clothing and jewelry: All necessary and proper wearing apparel of debtor and family; not covered by $3000 cap.
Miscellaneous and wildcard: Burial place and church pew; family portraits and books; not covered by $3000 cap.
Waiver: May be waived, in writing, either by separate instrument, or included in note or contract, except as to specified essential household goods, tools of trade, vehicle essential to debtor's business, wearing apparel and library.
Benefits, retirement plans, insurance, judgments, and other intangibles: Alabama Code § 6-10-8.
Public benefits: Not specified in exemption statute.
Pensions, retirement plans and annuities: Not specified in exemption statute.
Insurance, judgments or other compensation for injury: Insurance policies, if spouse or children are beneficiaries. Proceeds of insurance in beneficiaries' hands are exempt as related to debts of the insured.
Bank accounts: Not specified in exemption statute.
Alimony, child support: Not specified in exemption statute.
Survival after payment or deposit: Not specified in exemption statute.
Alabama Debt Statutes of Limitation
Your debt may have expired under Alabama’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the Alabama Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
Alabama Debt Statutes of Limitations
Contracts under seal: 10 years, (A.C. 6-2-33)
Contracts not under seal; actions on account stated and for detention of personal property or conversion: 6 years (A.C. 6-2-34)
Sale of goods under the UCC: 4 years (A.C. 7 -2- 725)
Open accounts: 3 years (A.C. 6-2-37)
Actions to recover charges by a common carrier and negligence actions; 2 years, (A.C. 6-2-38)
Actions based on fraud: 2 years (A.C. 6-2-3)
Alabama Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under Alabama’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under Alabama law.
Alabama Wage Garnishment Procedural Requirements
To obtain a writ of garnishment, a judgment creditor must make, before an officer authorized to administer oaths, and file, with the clerk of the court in which the judgment was entered, an affidavit stating the amount due from the judgment debtor to the judgment creditor, that process of garnishment is believed to be necessary to obtain satisfaction thereof and that the person to be summoned as garnishee is believed to be chargeable as garnishee in the case. Alabama Code _ 66 391.
Upon the filing of the affidavit, the officer filing the affidavit must issue process of garnishment and a copy thereof for each garnishee, to be served by the proper officer, requiring the garnishee to appear within 30 days and file an answer upon oath. Alabama Code _ 66393.
When a garnishment is issued on a judgment in which an appearance has not been entered for the defendant, the officer issuing the garnishment must issue notice to the defendant contemporaneously with the service of process of garnishment on the garnishee. The notice shall identify the name of the parties, the court in which the action is pending and the case number. In addition, except in proceedings to collect child or spousal support, the notice shall also contain a statement concerning rights of exemption. Alabama R. Civil. P. 64A.
Upon filing of the garnishee's answer, the clerk or register shall give the plaintiff and the defendant notice, and the garnishee may, if required by the plaintiff, be examined orally in the presence of the court. Any demand for oral examination must be made by motion filed within 30 days from the date of notice of filing of the answer. Alabama Code _ 66450.
If the garnishee admits the possession of money belonging to the defendant, he must pay the same or so much as may be necessary to satisfy the plaintiff's demand and costs into court to await the order of the court. Alabama Code _ 66 452.
When the answer of the garnishee is not controverted or, if controverted, is found for him, he shall be allowed $3 per day during his attendance when such attendance is required, together with five cents per mile going to and returning from court. In addition, when the personal attendance of the garnishee is not required, he shall be allowed $3 for such answer, which shall be taxed and collected as other costs. Alabama Code _ 66462.
Interest Rate at which Judgments Accrue Judgments for the payment of money, other than costs, if based upon a contract action, bear interest from the day of the cause of action, at the same rate of interest as stated in the contract. All other judgments shall bear interest at the rate of 12 percent per annum. In addition, fees allowed a trustee, executor, administrator, or attorney and taxed as part of the cost of the proceeding shall bear interest at a like rate from the day of entry. Alabama Code _ 8810. Applicable Forms Rights of Exemption, Alabama R. Civil. P. 64A
Alabama (Debt Collector) Call Recording Law
Under Alabama State and Federal Call Recording Laws, you could record the actual recorded conversation with a debt collector in your efforts to stop debt collectors from calling! Alabama is a one party consent state, meaning only the permission of one person on the call is necessary to record. YOU ALONE can be considered the one party to give consent, thus you do not need a debt collectors permission to record the phone conversation in the state of Alabama.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.
