This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.

Cost Of Delay in Alabama

In Alabama, the cost of delay on a money judgment is set at a fixed rate of 6% per year under the legal rate statute. This rate is established by Ala. Code § 8-8-1, which governs pre-judgment interest on contracts or obligations that do not specify a different rate. Post-judgment interest, however, is governed separately by § 8-8-10 and currently stands at 7.5%. The 6% figure applies to simple interest, calculated from the time the amount becomes due until judgment is entered. The statute does not compound interest, and the exact method of calculation follows the formula provided in the official source. A step-by-step worked example below illustrates how the computation operates. To estimate the specific cost of delay for a particular case, use the DocketMath calculator.

Governing authority

In Alabama, the cost of delay rule is set by Ala. Code § 8-8-1 (legal rate); cf. § 8-8-10 (judgment rate 7.5%). The verified packet cites Ala. Code § 8-8-1 (legal rate); cf. § 8-8-10 (judgment rate 7.5%) (https://law.justia.com/codes/alabama/2021/title-8/chapter-8/section-8-8-1/).

Alabama cost of delay: the verified value is 6% under Ala. Code § 8-8-1 (legal rate); cf. § 8-8-10 (judgment rate 7.5%). The verified packet cites Ala. Code § 8-8-1 (legal rate); cf. § 8-8-10 (judgment rate 7.5%) (https://law.justia.com/codes/alabama/2021/title-8/chapter-8/section-8-8-1/).

Estimate your own result: every situation has exceptions that can change the outcome. Use the cost of delay calculator to estimate your specific figure.

This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.