A study published last week found debt lawsuits in Alabama reached their highest level in 2025, affecting some of the most vulnerable people in the state.
The study by Pew Charitable Trusts, with analysis from January Advisors, found over 108,000 collection lawsuits were filed in the state last year, 140% of the 2019 number.
“And that is the highest number we have seen recorded in Alabama data, as far as debt collection lawsuits go, going back to 2010 when the state website was tracking this data,” said Lester Bird, senior manager for the courts and communities project at Pew Charitable Trusts.
“The core driver behind the rise in litigation is a systemic breakdown in communication. Litigation is typically a last resort, pursued only after cooperative outreach has been exhausted and primarily with consumers who can pay but choose not to engage,” ACA International, a trade organization that represents debt collection agencies, said in a statement.
That figure accounts for debt collection lawsuits, many of which are medical debts and credit cards, and they have increased significantly since 2023, according to experts. Although the data did not separately aggregate the different types of lawsuits, the data shows debt filings went from about 54,000 in 2023 to more than 108,000 last year as it reached its high-water mark.