Alabama Statute of Limitations on Debt: How Long Can You Be Sued?

In Alabama, the deadline to sue you depends on the kind of debt. A creditor or debt collector generally has six years to file suit on a written contract or a promissory note that is not under seal (Ala. Code § 6-2-34), but only three years to sue on an open account — the category that often covers ordinary credit card and revolving accounts (Ala. Code § 6-2-37). A contract executed "under seal" carries a longer ten-year deadline (Ala. Code § 6-2-33). These periods are firmly set by Alabama statute, and they are shorter than the limits in many neighboring states, so knowing which clock applies to your debt is the single most important fact in any Alabama collection lawsuit.

How long the creditor has, by debt type

Alabama law sorts debts into a handful of statutory buckets, and each has its own filing deadline:

• Open or unliquidated account (3 years): Under Ala. Code § 6-2-37, actions to recover money due on an open or unliquidated account must be brought within three years. Many credit card balances and store-card accounts fall here, because they are revolving accounts with no single fixed written contract governing the exact amount owed.
• Written contract not under seal (6 years): Under Ala. Code § 6-2-34, a claim founded on a promise in writing — including most signed loan agreements and installment contracts — has a six-year limit.
• Promissory note (6 years): A written promise to pay, such as a personal or auto loan note, is also generally subject to the six-year period.
• Contract under seal (10 years): Certain formal instruments executed under seal carry a ten-year deadline under Ala. Code § 6-2-33.

The line between an "open account" and a "written contract" is the most heavily litigated issue in Alabama credit card cases. Collectors frequently argue the longer six-year period applies because a cardholder agreement exists, while consumers argue the three-year open-account period controls. Because the outcome can decide the whole case, this distinction is worth raising with the court or with a lawyer. When you are unsure which period applies, treat the debt cautiously and get the specifics reviewed before you do anything that could extend the deadline.

When the clock starts

For most debts, the limitations clock starts on the date of your default — typically the first payment you missed and never made up. For an open account, Ala. Code § 6-2-37 measures the time "from the date of the last item of the account, or from the time when, by contract or usage, the account is due." In practical terms, that usually means the date of your last charge or last payment, or the date the balance became due. The clock does not restart simply because a debt is sold from one collector to another; a new owner steps into the original creditor's shoes and inherits the same start date.

Because the start date can be hard to pin down from old statements, it is one of the first things to nail down if you are sued. Demand the account records that show your last payment and last activity, and compare that date to the three-, six-, or ten-year window that applies.

The trap that can RESTART the clock

This is the rule that catches the most Alabama consumers off guard: an old, nearly expired debt can be revived. Making a payment on a debt — even a small "good faith" partial payment — can restart the limitations period and give the creditor a fresh window to sue. So can a written acknowledgment of the debt. Alabama law (Ala. Code § 6-2-16) provides that an acknowledgment or new promise will not remove the bar of the statute unless it is in writing, but the safest assumption is that any payment or any signed statement admitting you owe the money can reset the clock to zero.

This matters enormously when a collector calls about a debt that is close to expiring. A friendly request to "just send $20 to show you're working on it" can hand the collector years of additional time to take you to court. Before you pay anything or sign anything on an old debt, confirm whether the limitations period has already run. If it has, a single payment can undo your strongest defense.

An expired deadline is a defense you must RAISE

An expired statute of limitations does not erase your debt or wipe it off your credit report. What it does is give you a complete legal defense to a lawsuit — but only if you assert it. In Alabama, the statute of limitations is an affirmative defense. That means you have to plead it in your written Answer to the complaint. If you ignore the lawsuit or fail to mention the deadline, the court can enter a default judgment against you even though the debt was too old to sue on, and that judgment can lead to wage garnishment or a bank levy.

If you are served with a collection lawsuit in Alabama:

• Do not ignore it. You generally have a limited number of days to respond after being served. Missing the deadline is how most consumers lose.
• File a written Answer and specifically raise the statute of limitations as a defense if the debt is older than the applicable period.
• Make the collector prove its case — that it owns the debt, the amount, and the date of last activity. Do not admit the debt or the dates without seeing records.
• Do not make a payment or sign an acknowledgment to "settle" until you understand whether the debt is already time-barred.

Your federal protections

Federal law backs up Alabama's rules. Under the federal Fair Debt Collection Practices Act (FDCPA), third-party debt collectors may not sue or threaten to sue you on a debt they know is past the statute of limitations, and a federal Consumer Financial Protection Bureau rule prohibits collectors from suing or threatening suit on time-barred debt. If a collector files suit on a clearly expired Alabama debt, that may itself be an FDCPA violation that gives you a counterclaim. The federal Fair Credit Reporting Act (FCRA) separately limits how long most negative debts can stay on your credit report — generally seven years — which is a different clock from the statute of limitations and should not be confused with it.

It is also worth knowing how Alabama treats collection after a judgment. If a creditor does win a judgment, federal law caps most wage garnishment at 25% of disposable earnings, and Alabama follows that federal ceiling. Avoiding a judgment in the first place — by raising an expired statute of limitations — is far better than fighting a garnishment later.

Where to verify and get help

Statutes can be amended, and how Alabama courts classify a particular debt can turn on the facts, so confirm the current rule before you rely on it. You can read the limitations statutes yourself in the Code of Alabama, Title 6, Chapter 2 (sections 6-2-33, 6-2-34, 6-2-37, and 6-2-16). For consumer help and to report abusive collection practices, contact the Office of the Alabama Attorney General, Consumer Protection Section, which handles complaints against debt collectors operating in the state. You can also file a complaint with the federal Consumer Financial Protection Bureau. For a lawsuit you have actually been served with, talk to an Alabama consumer-protection attorney or a local legal aid office — the deadlines to answer are short, and getting the statute-of-limitations defense on the record on time is what protects you.

This article is general information about Alabama law, not legal advice for your specific situation.

Official Alabama Sources

This page is based on Alabama law. Limits and deadlines change — verify the current details directly with the official Alabama sources below. This is general legal information, not legal advice.

• Alabama Attorney General's Office - Consumer Interest Division — official Alabama agency.
• File a Consumer Complaint - Alabama Attorney General's Office

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Alabama’s own rules.