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Alabama Debt: The Basics

Debt is a big issue across America. However, the average amount of debt varies from state to state. The amount of debt can sometimes be affected by the median income for a state, though not always. There are also different laws in each state regarding debt and bankruptcy. This makes handling debt consolidation in Alabama, or debt management in Alabama different from, say Alaska.

Alabama’s median household income has been historically below the median income for the nation.  Because of this, it is consistently one of the poorer states in the country.  According to Experian, the average Alabamian owes more than $9,000 in credit card debt.

While Alabama doesn’t lead the way in high credit card debt, its residents certainly have a high average balance, especially for being one of the lower economic states in the nation.  Debt consolidation places can help you with credit counseling, bankruptcy in Alabama (both bankruptcy chapter 7 and bankruptcy chapter 13) and even Alabama debt consolidation.

 

Debt Collection in Alabama

It’s important to understand the basics of Alabama laws related to credit repair in Alabama.  Alabama follows the Fair Debt Collections Practices Act (FDCPA), which is enforced by the FTC. Alabama also has even more local laws that apply for debt collectors and their actions in the state of Alabama. These debt collection laws in Alabama require collectors to file for a special license and pay a license tax. Any debtor who feels a creditor or collection agency is not following this law, may file a complaint against them.

Understanding Statute of Limitations on Debt in Alabama

A statute of limitations for Alabama debt refers to the maximum period wherein debt has not been paid for. When looking into debt settlement in Alabama, it is important to know that the state has their own statute of limitations on debt in Alabama for the collection of past debts. The Alabama statute of limitations policy is currently six years for promissory notes, written contracts, and oral contracts. The statute of limitations on debt in Alabama is three years for open contracts. When you reach the limits and this time period expires, creditors or collection agencies cannot collect debt from the individual or file any legal case against him.

Alabama Garnishment Law

Wage Garnishment in Alabama

If your debt situation goes all the way to court, the Alabama judicial system can grant your creditor or collector the right for wage garnishment in Alabama. Under Alabama garnishment laws, the employer will be mandated to submit a portion of your salary as payment for your debts as part of debt settlement in Alabama. The specifics of this garnishment will be dependent on the judge’s ruling, but wage garnishment could go up as high as 25%.

Bank Account Garnishment in Alabama

Alabama garnishment law also allows for judges to rule that your bank accounts be submitted to the creditor in payment of your debts. However, the debtor can file a petition to request that their bank accounts be exempt from garnishment.

Lien on Properties in Alabama

The local judicial system in Alabama may allow the creditor or collector the right to your property, such as a house.  For specific questions related to property liens in Alabama, talk to our team, or talk to an attorney based in Alabama.

Community Property Law in Alabama

When you are married, debt can be troubling for both partners in the relationship. Debt can cause stress and effect a marriage. It can also be scary to think that a spouse may be affected by the other’s bad credit or be responsible for any debt settlement in Alabama. However, the state of Alabama does not uphold the community property law. Therefore, any debt owed by an individual will not be the responsibility of the individual’s spouse. It is also illegal for a creditor or collector to contact the spouse of a debtor or to make threats.

Common Non-Law in Alabama

Common non-law situations are not applicable in Alabama.  The only time that a less than the minimum payment will be acceptable is if it is part of an Alabama debt consolidation program or debt reduction program. The best way to get a handle on any mounting debt is to work with debt consolidation companies in Alabama who can help negotiate with creditors and get you into a program to help you get debt free.

Debt Relief in Alabama

If you have mounting debt and are looking to become debt free in Alabama, Debt Quest USA can offer you professional credit counseling services, including but not limited to: debt settlement in Alabama, debt consolidation in Alabama, and bankruptcy in Alabama.

Debt Relief in Alabama

If you have mounting debt and are looking to become debt free in Alabama, Debt Quest USA can offer you professional credit counseling services, including but not limited to: debt settlement in Alabama, debt consolidation in Alabama, and bankruptcy in Alabama.

Types of Debt Relief in Alabama

There are several types of debt relief programs in Alabama to choose from to help you become debt free. Debt management services in Alabama can help you decide which options or which debt management program in Alabama is right for you and guide you through the process of debt relief in Alabama. Many of these different options can help you save money in the long-run, making it more affordable to get out of debt.

Debt Settlement in Alabama

This option is when debt consolidation places negotiate with your creditors on your behalf to lower the principal amount of debts owed, and perhaps even lower the interest rate on those debts. Because this option eliminates some of the debt you owe through debt forgiveness, this form of debt management in Alabama can be very appealing, however, you may not qualify for this option. More often, debtors qualify for debt consolidation loans in Alabama. By working with a debt services agency, you’ll be able to find out whether debt settlement or debt consolidation in Alabama is the option for you.

Consumer Credit Counseling

Credit counseling in Alabama entails that the debt relief agency or company provide you with classes or counseling on how to better manage your finances in the future as well as how to manage any current debts. Consumer credit counseling is a form of education to help you better handle your finances and hopefully, keep you out of future debt.

Credit counseling often is paired up in conjunction with one of the other options of debt relief in Alabama. For example, you and your debt management services in Alabama may find that the best option for you is to utilize Alabama debt consolidation along with credit counseling in order to help you become debt free in Alabama.

Alabama Bankruptcy Process

As can be seen from the list, there are many types of debt relief programs in Alabama. Bankruptcy, however, is considered a last resort for debt management in Alabama. There are two options when filing for bankruptcy in Alabama: bankruptcy chapter 7 and bankruptcy chapter 13.

If you are seeking to repair your credit, bankruptcy in Alabama is not for you as it can have long-lasting effects on your credit score. It is best to exhaust all other options of debt relief in Alabama before going through bankruptcy. You might first consider debt consolidation loans in Alabama.

 

 

Bankruptcy in Alabama

Filing for bankruptcy in Alabama should be considered your last resort. If you are considering bankruptcy, be sure that you have considered other options first, including debt consolidation loans in Alabama or debt settlement in Alabama. Credit counseling in Alabama is an option for those with less severe debt or is paired up with another form of debt relief.

When you file for bankruptcy in Alabama, there are a few exemptions as to what the creditor is allowed to take from you as compensation for your debt. The types of properties exempt from compensation for bankruptcy in Alabama can be extensive, so it’s important to seek out help from an expert to understand what can be applied, and what is exempted.

Getting a handle on mounting debt can be a very stressful situation. Before taking any action, it is best to first get in touch with an Alabama debt consolidation program or credit counseling services. By speaking with a licensed and knowledgeable debt program official, they will be able to understand your unique situation. Once they have looked into your personal debt situation, they will be able to recommend the best course of action for you to take, whether it is a program to help you with debt consolidation in Alabama (such as debt consolidation loans in Alabama) or a debt settlement program (where a portion of the principal debt is forgiven). It is possible to become debt free in Alabama.

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How Much Can You Save?

How much debt do you owe?

$1

$100k+

What is your desired
monthly program deposit?

$1

$5000

Debt Quest Debt Settlement

$500

Your monthly
program deposit

$5,750 Savings

Your Savings

39 months to pay off your
current debt listed above.

Your monthly program deposit:
$500

Your Savings:
$5,750 Savings

39 months to pay off your
current debt listed above.


Debt Consolidation or Credit Counseling

$500

Your monthly
payment

You pay $14,478 more

No Savings

79 months* to pay off your
current debt listed above.

*Assumed average interest of 15%

Your monthly Payment:
$955

No Savings:
You pay $14,478 more .

36 months to pay off your
current debt listed above.

*Assumed average interest of 15%


Paying Minimum Monthly Payments

$500

Your monthly
payment

You'll Pay $29,199 More than you owe currently

No Savings

9 years* to pay off your current debt listed above.

*Assumed average interest of 20%

Your monthly Payment:
$500

No Savings:
You'll Pay $29,199 More than you owe currently.

32 years* to pay off your current debt listed above.

*Assumed average interest of 20%

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