Alaska Debt Collection Laws: Time Limits, Garnishment and Your Rights
Alaska debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Alaska
- Time limit to sue on a written contract
- 3 years for an action on a contract or liability, express or implied, unless another law sets a different period. Alaska uses the same period for written and oral contracts. Actions on a sealed instrument have 10 years. AS 09.10.053; AS 09.10.040
- Wage garnishment limit
- For a person paid weekly, twice a month or monthly, the protected amount is $473 per week or 75% of weekly disposable earnings, whichever is more. AS 09.38.030(a), 09.38.050(b); 8 AAC 95.030; Alaska Court System Judgment Debtor Booklet, CIV-511 (8/26)
- Money protected in a bank account
- Earnings protected under the earnings exemption stay protected. A person who does not receive regular weekly, twice-monthly or monthly earnings may claim $1,890 per month in cash and other liquid assets, including bank deposits ($2,970 with an affidavit that their earnings alone support… AS 09.38.030(b), 09.38.050(b), 09.38.020; 8 AAC 95.030; Alaska Court System Judgment Debtor Booklet, CIV-511 (8/26)
- Answering a debt lawsuit
- File a written Answer within 20 days after being served with the complaint. The court's form is Answer & Counterclaim to Complaint to Collect a Debt (CIV-481); Alaska Court System Self-Help Center, Debt Collection Cases: Answer
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 3 years for an action on a contract or liability, express or implied, unless another law sets a different period. Alaska uses the same period for written and oral contracts. Actions on a sealed instrument have 10 years. Re-verified and corrected 2026-10-27. Source: AS 09.10.053; AS 09.10.040 |
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| Time limit for credit cards and open accounts | 3 years, the same as other contracts. AS 09.10.053 covers contracts and liabilities whether express or implied, which includes credit card accounts and oral agreements. Re-verified and corrected 2026-10-27. Source: AS 09.10.053 |
| Can a payment restart the clock? | An acknowledgment or promise to pay keeps a debt alive only if it is in writing and signed by the debtor. The statute states that this rule does not change the effect of a payment of principal or interest. The statute does not itself say how long a payment extends the period. Re-verified 2026-10-27. Source: AS 09.10.200 |
| How long a judgment lasts | A lawsuit to enforce a judgment must be brought within 10 years. If 5 years pass after a judgment is entered without a writ of execution being issued, no execution may issue except by court order, which the court grants if there are just and sufficient reasons for the delay. Re-verified 2026-10-27. Source: AS 09.10.040; AS 09.35.020 |
If you are sued
| Answering a debt lawsuit | File a written Answer within 20 days after being served with the complaint. The court's form is Answer & Counterclaim to Complaint to Collect a Debt (CIV-481); in a small claims case, use the Small Claims Answer (SC-3) to stay in small claims. A defendant who does not answer risks a default judgment. |
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Garnishment and what creditors can't take
| Wage garnishment limit | For a person paid weekly, twice a month or monthly, the protected amount is $473 per week or 75% of weekly disposable earnings, whichever is more. It can be raised to $743 per week if the debtor files an affidavit that their earnings alone support the household. Different limits apply to judgments for child support, employee wages, state taxes and some other debts. Dollar amounts are inflation-adjusted under AS 09.38.115 and set by Department of Labor regulation (8 AAC 95.030); figures are as printed in the August 2026 booklet. |
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| Money protected in a bank account | Earnings protected under the earnings exemption stay protected. A person who does not receive regular weekly, twice-monthly or monthly earnings may claim $1,890 per month in cash and other liquid assets, including bank deposits ($2,970 with an affidavit that their earnings alone support the household). Alaska Permanent Fund dividends are treated separately: 20% of the annual dividend is exempt. Inflation-adjusted amounts as printed in the August 2026 booklet. |
| Homestead exemption | Up to $72,900 of equity in property used as the principal residence of the debtor or the debtor's dependents (the statute's base figure is $54,000, adjusted for inflation). Co-owners share a single cap for one living unit. If a homestead is sold on execution, the owner has 60 days before court confirmation to repurchase it. Adjusted figure from https://public.courts.alaska.gov/web/forms/docs/civ-511.pdf Re-verified 2026-10-27. |
| Vehicle exemption | Up to $4,050 for one motor vehicle, but only if the vehicle's full value does not exceed $27,000. The amount is the value of the debtor's interest, not counting recorded liens. Inflation-adjusted amounts as printed in the August 2026 booklet. |
| Claiming an exemption | Within 3 days after seizing property, the creditor must send the debtor a notice of levy and exemption rights. The debtor must file a Claim of Exemptions (CIV-515; CIV-531 for wage garnishment) with the court clerk within 15 days after the property is seized. The court gives the creditor 10 days to respond and then decides the claim or sets a hearing. Exemptions not claimed in time may be lost. |
| Bankruptcy exemptions | Alaska has opted out of the federal exemptions. In bankruptcy, only the listed Alaska exemptions (homestead, personal property, earnings and other listed categories) apply. Re-verified 2026-10-27. Source: AS 09.38.055 |
Debt collectors and interest
| State debt collection law | Alaska's collection agency law (AS 08.24) covers businesses that collect claims owed to another, and also a creditor that collects its own debts under a different name in a way that suggests a third party is collecting. It does not apply to attorneys, banks and lenders, or a creditor's own salaried employees. The Department of Commerce, Community, and Economic Development enforces it. Re-verified 2026-10-27. |
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| Debt collector licensing | Yes. A license under AS 08.24 is required to conduct a collection agency business, collect claims for others, or solicit claims for collection in Alaska. Licensing is handled by the Department of Commerce, Community, and Economic Development. Re-verified 2026-10-27. Source: AS 08.24.090 |
| Interest rate limits | Judgments bear interest at 3 percentage points above the 12th Federal Reserve District discount rate in effect on January 2 of the year the judgment is entered. A judgment on a written contract that sets an interest rate (not above the legal limit) bears the contract rate if the judgment states it. The current year's numeric rate was not confirmed. Re-verified 2026-10-27. Source: AS 09.30.070(a) |
Where to get help in Alaska
- Alaska Department of Law, Consumer Protection Unit (collection agency licensing is handled by the Department of Commerce, Community, and Economic Development)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in Alaska?
3 years for an action on a contract or liability, express or implied, unless another law sets a different period. Alaska uses the same period for written and oral contracts. Actions on a sealed instrument have 10 years.
How long can a creditor sue on a credit card debt in Alaska?
3 years, the same as other contracts. AS 09.10.053 covers contracts and liabilities whether express or implied, which includes credit card accounts and oral agreements.
Does making a payment restart the statute of limitations in Alaska?
An acknowledgment or promise to pay keeps a debt alive only if it is in writing and signed by the debtor. The statute states that this rule does not change the effect of a payment of principal or interest.
How long does a court judgment last in Alaska?
A lawsuit to enforce a judgment must be brought within 10 years. If 5 years pass after a judgment is entered without a writ of execution being issued, no execution may issue except by court order, which the court grants if there are just and sufficient reasons for the delay.
How much of my wages can be garnished in Alaska?
For a person paid weekly, twice a month or monthly, the protected amount is $473 per week or 75% of weekly disposable earnings, whichever is more. It can be raised to $743 per week if the debtor files an affidavit that their earnings alone support the household. Different limits apply to judgments for child support, employee wages, state taxes and some other debts.
How much money in a bank account is protected from creditors in Alaska?
Earnings protected under the earnings exemption stay protected. A person who does not receive regular weekly, twice-monthly or monthly earnings may claim $1,890 per month in cash and other liquid assets, including bank deposits ($2,970 with an affidavit that their earnings alone support the household). Alaska Permanent Fund dividends are treated separately: 20% of the annual dividend is exempt.
What is the homestead exemption in Alaska?
Up to $72,900 of equity in property used as the principal residence of the debtor or the debtor's dependents (the statute's base figure is $54,000, adjusted for inflation). Co-owners share a single cap for one living unit. If a homestead is sold on execution, the owner has 60 days before court confirmation to repurchase it.
Can a creditor take my car in Alaska?
Up to $4,050 for one motor vehicle, but only if the vehicle's full value does not exceed $27,000. The amount is the value of the debtor's interest, not counting recorded liens.
What debt collection practices are illegal in Alaska?
Alaska's collection agency law (AS 08.24) covers businesses that collect claims owed to another, and also a creditor that collects its own debts under a different name in a way that suggests a third party is collecting. It does not apply to attorneys, banks and lenders, or a creditor's own salaried employees. The Department of Commerce, Community, and Economic Development enforces it.
Do debt collectors need a license in Alaska?
Yes. A license under AS 08.24 is required to conduct a collection agency business, collect claims for others, or solicit claims for collection in Alaska. Licensing is handled by the Department of Commerce, Community, and Economic Development.
What is the maximum legal interest rate in Alaska?
Judgments bear interest at 3 percentage points above the 12th Federal Reserve District discount rate in effect on January 2 of the year the judgment is entered. A judgment on a written contract that sets an interest rate (not above the legal limit) bears the contract rate if the judgment states it.
How do I respond to a debt collection lawsuit in Alaska?
File a written Answer within 20 days after being served with the complaint. The court's form is Answer & Counterclaim to Complaint to Collect a Debt (CIV-481); in a small claims case, use the Small Claims Answer (SC-3) to stay in small claims. A defendant who does not answer risks a default judgment.
How do I stop a garnishment or claim an exemption in Alaska?
Within 3 days after seizing property, the creditor must send the debtor a notice of levy and exemption rights. The debtor must file a Claim of Exemptions (CIV-515; CIV-531 for wage garnishment) with the court clerk within 15 days after the property is seized. The court gives the creditor 10 days to respond and then decides the claim or sets a hearing. Exemptions not claimed in time may be lost.
Which bankruptcy exemptions can I use in Alaska?
Alaska has opted out of the federal exemptions. In bankruptcy, only the listed Alaska exemptions (homestead, personal property, earnings and other listed categories) apply.
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.