Oct 20, 2021

Commercial Debt Collection in Huntsville

The city of Huntsville has been part of Alabama since its incorporation in 1811. Located in Tornado Alley, Huntsville has been ranked as one of the best places to live in the US and one of the dangerous when it comes to tornado frequency.

Huntsville’s city population stands at more than 215,000 and a metro area population of almost 500,000 as of 2020. Not only Huntsville the second most populated city in the state of Alabama, it covers a colossal area of 221 square miles.

The Rocket City

Known as the site of the U.S. Space and Rocket Center, Huntsville offers a long history with education and infrastructure. In 2021, the Huntsville City School district passed a $400 million budget, a 33 percent increase compared to 2020.

In the past few years, Huntsville has been performing almost $400 million worth of road construction to improve the city’s transportation infrastructure. To pay for this construction project, the city increased sales taxes for residents and people traveling in Huntsville.

Huntsville Collection Laws

The increase in budgets and taxes has affected businesses, who have to comply with a list of city- and state-wide commercial debt collection laws. The interest rate for legal cases is 6 percent, with a 12 percent interest rate for judgements. The statute of limitations comes in three different segments: 3 years for open commercial debt collection accounts, 6 years for written accounts, and 20 years both for domestic and foreign judgments.

For more details on other commercial debt collection laws in the state of Alabama, visit our Alabama Collection Laws page at



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