Alabama Debt Relief
Alabama Credit Card Debt law allows only three years for a credit card company to sue the cardholder for non-payment of debt. The Statute of Limitations (SOL) begins from the last date the unmade payment was due. The state only allows the Defendant 14 days to respond to a summons. An answer should be filed as soon as possible by certified mail.
In Alabama, judgments are automatically converted to liens against the debtor’s real property, such as a home or plot of land. The lien lasts ten years. While the debtor may levy the property for payment, the expense in doing so is often prohibitive. For this reason, creditors are more likely to garnish accounts and wages. Alabama law limits the amount that can be garnished to 75% of the debtors disposable income.
Consumers should consider Debt Settlement as an option for paying the debt more quickly. When in a Debt Settlement program, interest is not charged. This helps to avoid bankruptcy, the last option available for managing debt. While the SOL on judgments in Alabama is 10 years, it can be extended by court order indefinitely. Interest on judgments can accrue at a rate of up to 12% annually.