Code of Alabama

Ala. Code § 8-9-8 (2026)

When General Assignment or Conveyance of Substantially All Property by Debtor Inures to Benefit of All Creditors Equally.

✓ official Alabama Legislature (ALISON) text, current July 2026
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(a) Every general assignment made by a debtor or a conveyance by a debtor of substantially all of his property subject to execution in payment of a prior debt by which a preference or priority of payment is given to one or more creditors over the remaining creditors of the grantor shall be and inure to the benefit of all the creditors of the grantor equally.

(b) This section shall not apply to or embrace mortgages, pledges, or pawns given to secure a debt contracted contemporaneously with the execution of the mortgage, pledge, or pawn and for the security of which the mortgage, pledge, or pawn was given.

(c) A “general assignment” within the meaning of this section shall include, in addition to the conveyances now defined as such by law, every judgment confessed, attachment procured by a debtor or other disposition of property by which a debtor conveys all, or substantially all, of his property subject to execution in payment of, or as the security for, a prior debt or charges such property with the payment of such debt.

(Code 1876, §2126; Code 1886, §1737; Code 1896, §2158; Code 1907, §4295; Code 1923, §8040; Code 1940, T. 20, §9.)

Notes of Decisions
Cited in 2 cases, 1985–1987 · leading case: McCollum v. Scott, 507 So. 2d 509 (Ala. 1987).
McCollum v. Scott, 507 So. 2d 509 (Ala. 1987). · cites it 9× “Where a husband conveys to his wife substantially all of his property pursuant to a judgment of divorce, is the wife a “creditor” within the provisions of Code 1975, § 8-9-8; or, more specifically, is the execution of such a conveyance, absent fraud, “in payment of a prior debt”…”
Hooton v. Cent. Soya Co. (In Re Hooton), 48 B.R. 575 (Bankr. N.D. Ala. 1985). · cites it 2× “Although no mention is made in the debtors’ complaint of the provisions of Code of Alabama, § 8-9-8 (1975), counsel for the debtors attempts to assert a right under that section, by means of what is entitled “PLAINTIFFS’ RESPONSE TO DEFENDANT’S MOTION FOR SUMMARY JUDGMENT.”
— Ala. Code § 8-9-8(a) — 1 case
McCollum v. Scott, 507 So. 2d 509 (Ala. 1987). “Where a husband conveys to his wife substantially all of his property pursuant to a judgment of divorce, is the wife a “creditor” within the provisions of Code 1975, § 8-9-8; or, more specifically, is the execution of such a conveyance, absent fraud, “in payment of a prior debt”…”
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