How Bad Is A Collection Case Judgment In Alabama?

“How Bad Is A Collection Case Judgment In Alabama?”

collection caseA judgment against you in an Alabama collection case is very bad for several reasons.

Four Negative Results From Collection Judgments

First, it is a judgment and that damages your credit report.

Second, you can have your wages garnished.

Third, you can have your bank account garnished.

Fourth, the judgment often earns interest at 12% or more which means that the judgment, if not paid, will double in approximately 6 years.  And then double again in 6 years.  And it keeps on repeating….

How To Fix A Judgment Issue

If you were not served properly, then you may be able to undo a default judgment.  See the video below:


If the judgment was properly obtained, then you need to make a settlement with the company that owns the judgment or you can look into bankruptcy to see if that is a viable option for you.

Better Yet — How To Avoid A Judgment In Alabama

The biggest danger to you suffering a judgment in a collection action is by defaulting.  While occasionally default judgments can be set aside, it is difficult.  So answer the collection lawsuit and avoid having to get rid of a judgment.

If you are going to lose, at least make the collector prove its case.  But often when you stand up and fight, the collection case may not be successful.

You may want to read our article (or watch the video) on the Five Secrets Debt Buyers Don’t Want You To Know About When They Sue You In Alabama.

Contact Us.

If you have any questions and you live in the state of Alabama, you can give us a call at 1-205-879-2447.

Or you can fill out a contact form and we will get in touch with you as soon as possible.

I look forward to chatting with you!

Have a great day.

-John G. Watts


  1. About 3 year sgo my husband received a leter from Holloway & Moxley telling hime that he was to be sued for non payment on union pluse card. we ar 70 yearsold & have alot of medical bills. Anyway I could not pay the union Plus caard because i could not afford it. we have beenpaying Holloway & moxley 85.00 a motn for the last 3 years & have never missed a payment We never get a statement form them Anyway our beginning balance was$
    7735.00 & we have paid them 36

    • JohnGWatts says:


      I think your comment was cut off. Was there an actual judgment against your husband?

      How much did you owe and how much have you paid?

      If you think the amount still owed is wrong, I would suggest getting with a lawyer or writing a letter to Holloway & Moxley and ask for an explanation on the money if you don’t think it is correct.

      I hope this helps….

      Contact my office if you have any further questions.

      John Watts

  2. Gale says:

    My sister was living out of the state of Alabama when she was served a summons at my mothers house. Mom told the server that daughter did not currently live there, but the summons was left there. She is sure that it was for a debt.

    My mom, nor any family did not know how to contact her for an extended period of time — didn’t know what state she was in either. (she was with a bad husband that eventually went to prison). How can she find out about the lawsuit? Is there a statue of limitations on this? Lawsuit was around 6 or 7 years ago. Is there possibly legal recourse for this situation?

    • JohnGWatts says:

      If your sister wasn’t properly served, then the judgment should be void and she should be able to set it aside.

      Is there a judgment against her?

      When did she find out about it?

      Contact us directly at 205-879-2447 or by having your sister fill out our contact form — upper right hand part of menu says “Contact Us” and we’ll be glad to chat with her.


      John Watts

  3. RobertO says:

    I had a judgment levied against me about three years ago. I entered into a installment payment agreement and paid for two years. After paying for two years I received a letter from the law firm advising that the file was closed to them and it had been transferred back to the creditor. The letter provided a number for me to call to resume sending my payments. However, I called the creditor and got the run around for nearly a year. Finally I called a few weeks ago and was told the file have been transferred to a firm in LA. When I contacted the firm I told them I wanted to do lump sum agreement and seek a release of judgment. The firm told me that the could not negotiated a debt settlement until I sent them written notice that I didn’t dispute the debt. I told them I didn’t think that was necessary since I had established a two year track record of repayment of repayment. Now they refused to resolved the debt. I trying to purchase home and have been pre-approved with the condition that this judgment is satisfied. Are they in breach of the agreement. What are my remedies.

  4. Bruce Hudson says:

    I have been sued by a customer, and the judge gave him immediate possession of the vehicle in question but, awarded me over $6,000.00 for labor and parts. My question is, what are my options in collecting the judgement amount from the plaintiff? The reason I ask is because this guy is a deadbeat that will not pay my company, me or any other repair shop he has had dealings with. His history is that he owes me $2,098.00 for something the court could not address, and has several outstanding repair bills, one which has been sent to collections and they are having a very difficult time collecting and probably give up on collecting.

    • John Watts says:


      Thanks for your comment. I don’t do collection work so be better to ask a collection lawyer. A few thoughts — if someone doesn’t have anything, hard to get something out of them. Now the collection lawyers would know how to find assets, etc. so worth reaching out to one in your city — not sure where you live in Alabama.

      Thanks again for your comment — sorry I can’t help you directly.

      John Watts

  5. christy says:

    I was served in 2008. judgment against me in 2009. my tx refund was offset in 2010 and 2013 (did not have a job in 2010 and 2011) started to get my refund in 2014, I assumed the debt was paid, or why would I be getting my refund. now in 2019 my checking account is being garnished, and they are saying I still owe the original amount. I have requested my offset letters so I can prove that some of the debt was paid. and I have asked that the lawyers garnishing my account prove they own the debt.

    not sure what else to do.

  6. Frances says:

    I had a judgement against me in 2009 and then they tried to garnish my pay but I answered the garnishment because I could not afford it so it did not go thru now ten years later it has come up again for a garnishment and the only way I knew was my boss told me. So I answered it then they set a court date and I was not notified so the garnishment went thru and I only know this because my boss told me. They were serving at a different address 2 hours from where I live and I have never lived in that town! I can’t not afford a garnishment is there anything I can do?

    • John Watts says:

      You could ask the court to reset the hearing if you did not receive notice. The judge may or may not do this. But if you can show the court was sending the notice to the wrong address, that can help.

      Best wishes

      John Watts

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