Code of Alabama

Ala. Code § 7-9A-918 (2026)

Assignee Removal; Successor Assignee.

✓ official Alabama Legislature (ALISON) text, current July 2026
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(a) The assignor or a creditor may request the circuit court to remove the assignee if the assignor or creditor has a reasonable belief grounds for removal exist under subsection (b).

(b) After a request under subsection (a) or on the court’s initiative in an action pending before the court under Section 21, the court may remove an assignee:

(1) For cause, including the assignee’s fraud, dishonesty, incompetence, gross mismanagement, or failure to comply with this part; or

(2) If removal of the assignee best serves the interests of the creditors.

(c) After an assignee resigns, is removed, dies, or becomes incapacitated, a successor assignee provided for in the assignment agreement becomes the assignee unless the successor assignee is not eligible to be an assignee under Section 7-9A-904(a) or is subject to removal under subsection (b). A court shall appoint a successor assignee if:

(1) The assignment agreement does not provide for a successor assignee; or

(2) The successor assignee provided for in the assignment agreement is ineligible to be an assignee under Section 7-9A-904(a) or is subject to removal under subsection (b).

(d) Subject to Section 7-9A-917, an assignee that resigns, is removed, dies, or becomes incapacitated is discharged from the assignee’s duties under this act when the assignee, or a representative of a deceased or incapacitated assignee:

(1) Accounts for and turns over to the successor assignee all assets of the assignment estate; and

(2) Submits to creditors a report summarizing the receipts and disbursements made during the service of the assignee.

(e) Subject to an applicable privilege, a court may order an attorney, accountant, or other person that has information in a record relating to the assignment estate or the assignor’s financial affairs to turn over or disclose the record to the successor assignee.

(Act 2026-581, §18.)