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Collections Guide
How Do I Collect a Judgment in Alabama?
5 min read· Alabama Business Law · Serving AL, GA & SC
Where Is Your Dispute?
This Guide Covers Alabama. Choose Your State.
Contract deadlines and forums differ sharply in each state we serve. Read this question answered under the law of the state where your dispute sits.
Alabama
Six years on written contracts (Ala. Code § 6-2-34)
You are reading the Alabama guide
Georgia
Six years on written contracts (O.C.G.A. § 9-3-24)
Read the Georgia guide
South Carolina
Three years on written contracts (S.C. Code § 15-3-530)
Read the South Carolina guideThe Short Answer
To collect a money judgment in Alabama, you use post-judgment enforcement tools because a judgment is not self-executing. Common methods include garnishing the debtor's wages or bank accounts, recording the judgment to create a lien against the debtor's real property, and conducting discovery to locate assets. The key is identifying assets the debtor actually has, since even a valid judgment is only as collectible as the debtor's ability to pay.
Overview
Overview
Obtaining a judgment is only the first half of the matter. A judgment gives you the legal right to collect, but converting that right into actual payment requires Alabama's enforcement tools and a degree of persistence.
This guide explains how to collect a money judgment in Alabama after you have won. It is educational and not legal advice on your matter.
Locate the Debtor's Assets
Collection starts with information. Post-judgment discovery lets you require the debtor to disclose assets, income, bank accounts, and property, which tells you what is actually available to collect against.
Knowing where the money and property are is essential, because the enforcement tool you choose depends on what the debtor has, wages, bank accounts, real estate, or business assets.
Use Garnishment and Liens
Garnishment lets you reach the debtor's wages or funds held by third parties, such as bank accounts, subject to applicable exemptions. It is one of the most effective enforcement tools when the debtor has income or deposits.
Recording your judgment can create a lien against the debtor's real property in that county, which can prevent a clean sale or refinance and may eventually result in payment from the property's value.
Be Realistic About Collectability
Some debtors have few reachable assets, and certain property and income are exempt from collection. A judgment against a debtor with nothing to collect may be difficult to satisfy, though a recorded judgment lien on real property lasts ten years, the judgment can be revived within twenty years, and most non-contract Alabama money judgments accrue post-judgment interest (currently 7.5% under Ala. Code § 8-8-10) while they remain unpaid.
Assessing collectability, ideally before you sue, prevents spending more on enforcement than you can realistically recover, and helps you focus on the tools most likely to produce payment.
An Illustrative Example
An Illustrative Example
A Birmingham business obtains a $150,000 judgment, then discovers the losing party ignores it and pays nothing.
A judgment is not self-executing, so the company must use enforcement tools like post-judgment discovery to locate assets, garnishment of wages or bank accounts, and recording the judgment as a lien on real property. Collectability ultimately depends on what reachable assets the debtor actually has.
This scenario is a simplified, illustrative hypothetical to explain how the law generally works. It is not a real case and is not a prediction or guarantee of any particular outcome.
Key Takeaways
Key Takeaways
A judgment is not self-executing, you must enforce it.
Use post-judgment discovery to locate the debtor's assets.
Garnishment reaches wages and bank accounts, subject to exemptions.
Recording the judgment creates a lien on the debtor's real property.
Collectability depends on what the debtor actually has, assess it early.
For a collections matter in Alabama
Our Birmingham and Hoover business litigators handle these disputes. Read more about our work on business collections, or call to discuss the matter. The initial consultation is confidential and without charge.
Frequently Asked Questions
Frequently Asked Questions
How do I find out what assets a debtor has?
Through post-judgment discovery, which can require the debtor to disclose income, bank accounts, and property. This information determines which enforcement tools will be effective.
Can I garnish a business debtor's bank account?
Often yes. Garnishment can reach funds held by third parties, including bank accounts, subject to applicable exemptions and procedures. It is a common and effective collection method.
How long is a judgment good for in Alabama?
Alabama judgments remain enforceable for a substantial period and can often be revived, so a debtor without assets today may become collectible later. Confirm the current timeframes for your judgment.
This guide is provided for general educational purposes only and does not constitute legal advice or create an attorney-client relationship. Alabama law and its application depend on the specific facts of your situation and can change over time. For advice about your matter, speak with a licensed Alabama attorney.