You might think of Alabama as a land locked southern state but you would be wrong. It actually has 53 miles of coastline and 607 miles of shoreline. Its coastline ranks it 17th in the US.
Alabamans’ average credit card debt is $4817. This makes it 19th in the US and is much better than the nationwide average credit card debt of $5235 per borrower. The state also ranks better in terms of home ownership at 73.2% versus the nation’s average home ownership of 65%.
Based on the last census, Alabama’s population is 4,822,000, ranking it 23rd in the US. On the downside, its median household income is just $4,415 versus the US median household income of $5,017. In other words, the state in general is poorer than the US as a whole.
Alabama’s total labor force numbers 1,824,400. The largest segment of this is Office and Administrative Support Occupations with 287,130 workers. Its second largest segment is Sales and Related Occupations with 212,310 employees and third is Production Occupations with 190,450 workers.
Famous Alabamans include baseball great Hank Aaron, civil rights leader Coretta Scott King, boxer Joe Lewis, and recording star Hank Williams.
Only Alabama has all the major natural resources required to make iron and steel. It is also the largest supplier of steel pipe and cast-iron products.
Alabama was admitted to the Union on December 14, 1819. Cheaha Mountain is the highest point above sea level in Alabama at 2405 feet. And its city of Huntsville is known as the world’s rocket capital. All
The state had an unemployment rate of 6.1% as of November of last year. This ranks it 20th in the US and is much better than the nation’s overall unemployment rate of 7.6%. However, this still means that there are approximately 112,000 Alabamans unemployed and looking for work.
Alabama’s largest city is Birmingham with a population of 212,237. Unfortunately, its unemployment rate is on the high side at 8.1%. Alabama’s second-largest city with a population of 205,764 is Montgomery. Its unemployment rate is slightly better at 7.1%. Mobile is Alabama’s third largest city with a population of 195,111. Its unemployment rate is identical to that of Birmingham at 8.1%.
Alabama Debt Relief Options
If you have mounting financial obligations and you are looking for debt relief options in Alabama, National Debt Relief can provide you with debt professional service. You can give us a call through our toll free numbers or you can send us your information through the short form you will find on this page. We will have a debt professional call you within moments to help you find the right solution for your unique financial situation.
As a debt relief company, we will aim to reduce your debt obligations by negotiating with the creditors and collection agencies going after you. By carefully analyzing your financial standing and capabilities, the National Debt Relief professional assigned to you will be able to come up with the best debt management plan that will suit your needs. This plan will help them convince your creditors and collectors to grant a percentage pardon on your outstanding balance.
Best of all, National Debt Relief is here to educate you of your rights as a consumer in the State of Alabama. There are debt relief laws enforced by the Federal Trade Commission (FTC) and there are states that came up with their own laws to further protect the best interests of debt ridden consumers.
This is intended to be a helpful and informational debt resource for Alabama consumers and should not be treated as a legal advice.
Debt Collection Laws in Alabama
The State of Alabama functions under the Fair Debt Collections Practices Act (FDCPA) enforced by the FTC. They also went further by providing their own state law, the Ala. Code §40-12-80, that debt collectors must adhere to. It basically declares that all collectors should file for a special license that will allow them to collect debts from consumers. This involves the payment of a license tax that will depend on the number of dweller where they plan to practice their collection business. For cities and town with 20 thousand and more residents, the license tax is $100. For areas with less than 20 thousand residents, the license tax is $25. The debt collectors under this law is based on the definition provided by the FDCPA.
Any debtor or consumer who feels that the creditor and/or collection agency is not following the provisions of this law can file a complaint against them. They can get in touch with the Alabama State Attorney General through the Consumer Affairs Division at the Alabama State House, 11 South Union Street, Montgomery, AL (36130). For more information, you can call them through (334) 242-7300 or (800) 392-5658.
Statute of Limitations in Alabama
The State of Alabama has their own statute of limitations for the collection of past debts. This refers to the maximum period wherein debt has not been paid for.
The statute of limitations in Alabama for written contracts, oral contracts and promissory notes are up to 6 years while open accounts are only up to 3 years. Once this period expires without the creditor or the collection agency initiating any legal proceeding, they will be unable to collect the debt from the consumer or file a legal case against the latter.
Court Scenarios in Alabama
In the event that your debt goes to court, the Alabama judicial system can grant your creditor or collector the right to do the following:
Wage Garnishment. Your employer will be mandated to submit a portion of your salary as payment for your debts. The percentage will depend on the judge’s rule but in the State of Alabama, it can go as high as 25%. This includes state and municipal employees as well.
Bank Account Garnishment. Your bank accounts can also be submitted to the creditor if included in the judgement. However, the consumer can file a petition to request that their accounts be exempt from garnishment.
Lien on Properties. This simply provides the creditor or collector the right to the property you own that is of value.
When you file for bankruptcy in the State of Alabama, there are exemptions to what the creditor can take away from you to compensate for your debt. Here is a list of properties that is exempted:
- $5,000 worth of properties (land or mobile home)
- $3,000 worth of personal properties (except wages ruled for garnishment)
- Clothing, Books, Family portraits
- Burial place, Church pews
- $250 of Annuity and/or Disability proceeds every month
- Life Insurance payments or proceeds
- Benefits from: Mutual Aid Association, Fraternal Benefit Society
- Pensions and retirement accounts provided to the following: state employees, teachers, judges, and law enforcement officers including IRAs
- Public benefits for the disabled, senior citizens
- POW Benefits
- Worker’s Compensation
- Crime Victim’s Compensation
- Unemployment Benefits
FAQs on Debt Collection in Alabama
What if the process of wage garnishment was done in Alabama but the debtor lives in another state? Is it right for the employer to deduct the court-ordered wage garnishment?
Alabama has a civil procedure law wherein the creditor/collector is expected to provide the debtor with notice about the legal action filed against them. This can help the debtor counter the garnishment ruling of the Alabama court.
If a debtor in Alabama have an unpaid credit card bill, is the collector allowed to contact their spouse and demand payment through the liens of a property they own?
The State of Alabama does not uphold the community property law and thus any debt of an individual spouse will not affect the other. Also, the collector violated the FDCPA by getting in touch with the spouse of the debtor and making threats. The debtor can file a violation against the collector.
A debtor owing money in Montgomery, Alabama is being called upon by their collectors and they have stated that they have no means to pay for their debts. What will happen next?
If a debtor is unable to pay their debts, the collector will be forced to file a lawsuit against them. The debtor has a couple of options in Montgomery. One is to get in touch with the creditor directly (not the collections agency) to try to negotiate another payment term that they can afford. If they are unable to do this, it is advised that they get debt relief help so the settlement and negotiations can be done by a professional with possibly an established working relationship with the creditor already. The debt relief professional should be able to objectively view the financial standing and capabilities of the debtor to come up with a debt management plan that both the debtor and creditor can live with.
If a small payment is made on a credit card (much lower than the minimum amount), will the debtor still be pursued with judgements?
This is called a common non-law in Alabama and practically an urban myth. The only time that your lower-than-the-minimum payment will be acceptable is if it is part of a debt reduction plan that has been negotiated on your behalf by a debt management company. The collector will have to agree to this new reduced payment of course.
National Debt Relief is a debt management company who can help consumers in the State of Alabama get rid of debt. Get in touch with us to find out the different debt relief options available in Alabama.