COLLECTION LAWS – ALABAMA (AL)
(1) Pre-Judgment Interest Rate: In Alabama, the pre-judgment interest rate is governed by Section 8-8-10 of the Code of Alabama. According to this statute, the pre-judgment interest rate is set at 7% per annum.
(2) Post-Judgment Interest Rate: The post-judgment interest rate in Alabama is determined by Section 8-8-8 of the Code of Alabama. As per this statute, the post-judgment interest rate is equal to the prime rate plus 2%.
(3) Statute of Limitations for Written Contract: The statute of limitations for written contracts in Alabama is six years. This is outlined in Section 6-2-34 of the Code of Alabama, which specifies that actions to enforce a written contract must be brought within six years from the date the cause of action accrued.
(4) Statute of Limitations for Oral Contract: For oral contracts, the statute of limitations in Alabama is six years. Section 6-2-34 of the Code of Alabama also applies to oral contracts, requiring that actions to enforce an oral contract must be initiated within six years from the date the cause of action arose.
(5) Statute of Limitations for Open Account: The statute of limitations for an open account in Alabama is three years. This is stated in Section 6-2-37 of the Code of Alabama, which specifies that actions to enforce an open account must be filed within three years from the date the cause of action arose.
(6) Statute of Limitations for Contract for Sale of Goods: In Alabama, the statute of limitations for a contract for the sale of goods is four years. This is established in Section 7-2-725 of the Code of Alabama, which states that actions for breach of contract for the sale of goods must be commenced within four years after the cause of action accrued.
(7) Statute of Limitations for Promissory Note: The statute of limitations for a promissory note in Alabama is six years. Section 6-2-37 of the Code of Alabama applies to promissory notes as well, mandating that actions to enforce a promissory note must be brought within six years from the date the cause of action arose.
(8) Statute of Limitations for Enforcement of Domestic Judgment: When it comes to the enforcement of a domestic judgment in Alabama, the statute of limitations is 20 years. This is outlined in Section 6-2-34.1 of the Code of Alabama, which states that a judgment may be executed within 20 years from the date it was entered.
(9) Statute of Limitations for Enforcement of Foreign Judgment: In Alabama, the statute of limitations for the enforcement of a foreign judgment is 10 years. This is governed by Section 6-9-240 of the Code of Alabama, which specifies that an action to enforce a foreign judgment must be commenced within 10 years from the date the judgment became final.
(10) Garnishment Exemptions: Alabama has specific garnishment exemptions that protect certain types of income and property from being seized. These exemptions are outlined in Section 6-10-1 et seq. of the Code of Alabama and include exemptions for various types of wages, retirement benefits, public assistance, and personal property, among others.
Disclaimer: Please note that the presented content is an outline of legal regulations, serving as a general overview rather than an exhaustive representation of comprehensive statutes. It is crucial to recognize that this outline does not constitute “legal advice.” Moreover, it is important to acknowledge that subsequent changes to the listed statutes may occur subsequent to this publication. It is recommended to consult an attorney in the jurisdiction to confirm the information is up-to-date and accurate.