Commercial Debt Collection Laws in Mobile
Located in the southwest corner of Alabama is the city of Mobile, which is home to almost 190,000 residents. Mobile covers a range of 180 square miles, including 140 square miles of land and 40 square miles of water.
B2B Debt Collection Laws
One of the most helpful factors for businesses in Mobile is the city’s commitment to following city and state commercial debt collections, because it helps maintain law for businesses who are owed credit and money from other businesses. For example, the interest rate of legal business debt cases is 6 percent; however the interest rate on judgments is 12 percent.
The statute of limitations in Mobile includes:
- Open Accounts: 3 years
- Written Contracts: 6 years
- Domestic Judgments: 20 years
- Foreign Judgments: 20 years
Regarding general garnishment exemptions for businesses, there is an expected 75 percent of wages that are exempt from garnishment. For more details on debt collection laws and commercial collection information in the state, visit the Alabama Commercial Debt Laws page.
History of Mobile
As a member of one of the oldest states in the United States, Mobile stands as a testament to the rich and diverse tapestry of Southern history. The European settlement of Mobile began with French colonists in 1702. For almost 20 years, ownership of the settlement was passed around between French colonists and the residents suffered from a variety of disease outbreaks and floods. In 1720, the main purpose of Mobile was to serve as a regional military and trading center. Between 1720 and 1813, Mobile was led by Britain under King Georgia III, then by the Spanish under Bernardo de Galvas.
In the 19th century, Mobile was included in the Mississippi Territory with a population of roughly 300 residents. By the time Alabama gained statehood in 1819, its population had almost tripled. From the 1830s and onward, Mobile became known as a city of commerce for cotton and slave trades. Due to its boom in the slave trade, several businesses moved to Mobile to make clothes, food, and supplies for slave traders. During the American Civil War, Mobile was a Confederate city until it was surrendered to the Union in 1865.
In the 20th century, the economic structure of the country pushed Mobile to develop new industries, generate new jobs, and attract more residents. By 1900, the resident population was 40,000, and by 1920 it had grown to 60,000. During this time, Alabama passed a new constitution that disenfranchised most black people and poor white people. One of the biggest industries in Mobile at this time was the industrial industry that leaned on shipyards and production.
From 1920 to the passage of the Civil Rights Act of 1964, much of the population of Mobile struggled with maintaining post-civil war diversity and segregation orders established by the federal government. From shipyard riots in the 1940s, to WWII veteran activism for constitution rights and social justice, to the push for equal educational opportunities in schools, Mobile has been a major evolutionary hub.
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