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Browse our 1 legal question about Debt & Collection in United States and the lawyer answers, or ask your own questions for free.
Debt and collection law in Birmingham, United States, refers to the regulations dictating how creditors can pursue debt recovery from debtors. The Fair Debt Collection Practices Act (FDCPA) is a federal law applied nationwide, including in Birmingham. It protects borrowers from harassing methods of debt collection by debt collectors. Alabama’s Statute of Limitations that specifies the duration within which a creditor can sue a debtor for an unpaid debt is also applicable in Birmingham. Specific Birmingham city laws may further regulate certain aspects of these procedures.
Hiring a lawyer can be crucial if you are dealing with a significant amount of debt, facing a lawsuit from a creditor, incorrectly approached by a debt collector, or having your rights infringed upon during the debt recovery procedure. A lawyer will ensure proper representation in court, help negotiate repayment plans with your creditors, protect your rights against debt collectors, and provide advice regarding bankruptcy, if necessary.
The key local laws impacting Debt & Collection in Birmingham are the Fair Debt Collection Practices Act (FDCPA) and the Alabama Statute of Limitations. The FDCPA prevents debt collectors from using abusive or unfair practices when collecting debts, while the Alabama Statute of Limitations limits the time frame within which a creditor can sue for an unpaid debt. Specifically, for written contracts, the limitation is 6 years; for oral agreements, promissory notes, or open-ended accounts like credit cards, it's 3 years.
No, under the Fair Debt Collection Practices Act, debt collectors can't contact you at inconvenient times unless you agree to it. Without specific permission, they cannot call before 8 a.m. or after 9 p.m.
No, debtor's prison is illegal in the United States. However, if a creditor secures a judgment against you and you fail to obey the court's order, you could potentially be held in contempt of court, which may involve jail time.
Yes. If you've defaulted on debt, a creditor can obtain a court order to garnish part of your wages until the debt is paid off. However, certain restrictions apply.
No, once the collector knows that you’re represented by a lawyer, they must generally contact the lawyer instead of you.
Yes, expiration of the statute of limitations doesn't eliminate the debt. It only limits the legal avenues a creditor can use to collect it.
For additional advice or assistance, you can refer to the Legal Services Alabama (LSA), which provides free civil legal aid for low-income citizens, or the Birmingham Bar Association, which can provide referrals and resources. The Alabama State Bar’s Lawyer Referral Service can also assist in finding a lawyer.
If you are dealing with issues related to debt and collection, consider reaching out to a lawyer. Consultations can provide you with crucial advice suited to your unique situation and help you understand your rights and legal avenues. Additionally, contact your local or state consumer protection agency if you believe your rights as a debtor have been violated.
