Alabama’s deadlines to sue on a debt depend on how the debt is classified. Written promises and loans get six years. Open accounts get three [1][2]. Because the gap is big, the label a creditor puts on a debt can matter a lot in court.
At a glance
- Written contract, loan, or stated account
- 6 years [1]
- Open or unliquidated account
- 3 years [2]
- Contract under seal
- 10 years [4]
- Judgment lien
- 10 years [6]
- Credit report
- About 7 years from first delinquency, separately [9]
| Type of debt | Deadline | Law |
|---|---|---|
| Promise in writing, not under seal | 6 years | Ala. Code § 6-2-34(4) |
| Money on a loan, or a stated or liquidated account | 6 years | Ala. Code § 6-2-34(5) |
| Other simple contracts | 6 years | Ala. Code § 6-2-34(9) |
| Open or unliquidated account | 3 years from the last item or due date | Ala. Code § 6-2-37(1) |
| Contract or writing under seal | 10 years | Ala. Code § 6-2-33(1) |
| Contract for the sale of goods | 4 years | Ala. Code § 7-2-725 |
Six years or three
Alabama’s six-year statute covers actions “founded on promises in writing not under seal,” actions to recover money on a loan or on a stated or liquidated account, and any simple contract not listed elsewhere [1].
The three-year statute covers money due on an open or unliquidated account . The clock starts from the date of the last item on the account, or from when the account was due under the contract or usual practice [2].
Which one fits a credit card or store card isn’t spelled out in the code. It depends on the agreement and how the account is treated, which a court decides. If you’re sued on an older account, that question is worth raising with a lawyer.
Other limits
- Contracts under seal have ten years [4].
- Sales of goods have four years under Alabama’s version of the Uniform Commercial Code. The parties can agree to a shorter period, not less than one year, but not a longer one [5].
What can restart the clock
Alabama is strict about this. Under the code, no act, promise or acknowledgment restarts the deadline except [3]:
- a partial payment on the debt, made before the deadline has run out, or
- an unconditional promise in writing, signed by the person who owes it.
A phone call admitting the debt, or a promise that isn’t in writing, doesn’t count under that rule [3].
What “time-barred” means
A debt is time-barred once the deadline to sue has passed. Collectors can still ask you to pay, but they can’t sue or threaten to sue you over it [10].
If you’re sued anyway, the court won’t raise the deadline for you. It’s up to you to tell the court the time has run out [10]. In small claims, you have 14 days after being served to answer, so act fast.
Judgments last much longer
Once a creditor wins in court, new clocks start:
- Lien: a recorded certificate of judgment is a lien on the debtor’s property in that county for 10 years from the judgment [6].
- Presumed paid: if 10 years pass from the judgment with no execution issued, or 10 years since the last execution, the judgment is presumed satisfied. The creditor then has to prove it wasn’t paid [7].
- Outer limit: a judgment can’t be revived after 20 years from its entry [8].
The credit report clock is different
How long a debt shows up on your credit report is a federal rule, separate from Alabama’s deadline to sue. Under the Fair Credit Reporting Act, collection and charged-off accounts generally can’t be reported once they’re more than seven years old, counted from 180 days after the delinquency began [9]. A debt can fall off your report and still be collectible in court, or stay on your report after the deadline to sue has passed.
Accurate information can be reported for the full period. If something is wrong, or still listed after the reporting period ends, you can dispute it with the credit bureaus for free. For more on federal timelines, see BestAmerica’s guide to how long negative items stay on a credit report.
Where to get help
- Legal aid: Alabama’s legal aid programs can help eligible people answer a debt lawsuit.
- Consumer Financial Protection Bureau (consumerfinance.gov): takes complaints about debt collectors [10].
- A consumer attorney: especially if the creditor and you disagree about whether the three-year or six-year rule applies.
Sources
- Code of Alabama § 6-2-34: Six-year limitations period
- Code of Alabama § 6-2-37: Three years for open accounts
- Code of Alabama § 6-2-16: Partial payment or written promise
- Code of Alabama § 6-2-33: Ten years for sealed contracts
- Code of Alabama § 7-2-725: Limitations in contracts for sale
- Code of Alabama § 6-9-211: Judgment lien lasts 10 years
- Code of Alabama § 6-9-191: Judgment presumed satisfied after 10 years
- Code of Alabama § 6-9-190: No revival after 20 years
- 15 U.S.C. § 1681c (Fair Credit Reporting Act, how long items stay)
- CFPB: What is a statute of limitations on a debt?
Common questions
What is the statute of limitations on debt in Alabama?
It depends on the type of debt. Alabama allows six years for written promises, loans and stated or liquidated accounts, and for simple contracts not listed elsewhere. Open or unliquidated accounts have three years from the last item or the due date. Contracts under seal have ten years, and sales of goods four years.
What restarts the statute of limitations on a debt in Alabama?
Only two things, under Alabama law: a partial payment made before the deadline runs out, or an unconditional promise to pay that's in writing and signed by the debtor. A verbal acknowledgment isn't enough.
How long does a judgment last in Alabama?
A recorded judgment is a lien on the debtor's property in that county for 10 years. A judgment is presumed paid if 10 years pass without an execution being issued, and it can't be revived after 20 years.