In Alabama, a judgment creditor cannot simply take everything you own. State law sets specific dollar caps on what is protected. The two headline figures are the homestead exemption under Alabama Code § 6-10-2 (a base of $15,000 in equity in your home or mobile home, on up to 160 acres, now periodically adjusted upward for inflation) and the general personal property exemption under § 6-10-6 (a base of $7,500 that you can apply to almost any personal property you choose). Both amounts were raised by Act 2015-484 and are indexed, so the current figures are usually somewhat higher than these statutory minimums. Because Alabama folds your car and household goods into that single $7,500 personal property pot rather than giving them separate exemptions, knowing how to allocate it is the single most important decision an Alabama debtor makes.
Alabama's homestead exemption
Alabama Code § 6-10-2 protects the equity in your primary residence up to a statutory base of $15,000, covering a home, condominium, or mobile home situated on land not exceeding 160 acres. The protected amount is the equity — the home's value minus what you still owe on the mortgage — not the full market value. A married couple can effectively double the protection because each spouse may claim the exemption on jointly owned property. Since 2015 the dollar figure has been subject to upward adjustment for inflation, so always confirm the current indexed amount before relying on the base number.
Important limits apply. The homestead exemption does not stop foreclosure by the mortgage lender itself, and it does not protect against a properly recorded mechanic's lien, unpaid property taxes, or debts secured by the home. It protects against general judgment creditors — for example, a credit card company or medical debt collector that has sued you and won.
The $7,500 personal property exemption
Under Alabama Code § 6-10-6, a resident may exempt personal property — other than wages, which are treated separately — up to a base value of $7,500, also adjusted for inflation since 2015. This functions like a flexible “wildcard” exemption: you decide what it covers. That matters in Alabama because, unlike many states, Alabama does not provide a separate motor vehicle exemption. Your car, truck, furniture, appliances, electronics, and tools all draw from the same $7,500. If you own a paid-off vehicle worth more than the exemption, the equity above the cap is theoretically reachable, though in practice creditors rarely pursue low-value used cars because of the cost and the forced-sale rules.
A few categories sit outside the $7,500 pot and have their own protection. Alabama Code § 6-10-5 exempts a family burial place and a church pew or seat. Wearing apparel of the debtor and family is protected. Crops and certain agricultural property may qualify under related provisions. Life insurance proceeds payable to a spouse or children are protected under § 6-10-8 and the insurance code.
Wage garnishment in Alabama
Wages are the income a creditor most often targets. Alabama does not give greater protection than the federal baseline for most ordinary debts, so the federal Consumer Credit Protection Act controls the ceiling: a creditor may garnish the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage. Disposable earnings means what is left after legally required deductions such as taxes and Social Security. The federal minimum wage has been $7.25 per hour for years, and Alabama has no separate state minimum wage as of 2026 — but you should confirm the current federal figure with the U.S. Department of Labor before calculating, because the protected floor moves if that rate changes.
Different rules apply to certain debts. Child support and alimony can reach a larger share of wages, and federal student loans and unpaid federal taxes follow their own collection limits that are not capped at 25%. For these, the ordinary garnishment protections do not give the same shelter.
Retirement accounts and public benefits
Some of the strongest protections come from a combination of Alabama and federal law:
- Social Security and SSI: Exempt under federal law (42 U.S.C. § 407). These funds keep their protected character even after deposit, though you may have to prove to a court that the money in a levied account traces to benefits.
- Unemployment compensation: Exempt under Alabama Code § 25-4-140.
- Workers' compensation: Exempt under Alabama Code § 25-5-86.
- State retirement systems: Benefits from the Teachers' Retirement System and the Employees' Retirement System of Alabama are protected by statute (see § 16-25-23 and § 36-27-28).
- Private and individual retirement plans: ERISA-qualified pensions and 401(k) plans enjoy broad federal protection, and IRAs and other retirement assets receive protection under Alabama trust and exemption law. Funds generally must remain in the qualified account to stay protected.
- VA, veterans', and many other federal benefits: Protected under their own federal anti-attachment statutes.
Federal benefit deposits also get a measure of automatic protection at the bank level: under federal banking rules, a bank that receives a garnishment order must review the account and shield a baseline amount of Social Security and certain federal benefits directly deposited within a lookback period, without you having to file anything first.
How to claim your exemptions against a judgment or bank levy
Exemptions are not always automatic — for personal property and wages you usually have to assert them, and you have to act quickly when a garnishment or levy hits. The mechanics in Alabama generally work like this:
- File a claim of exemptions. When a creditor garnishes wages or levies a bank account, you file a written claim of exemptions with the court that issued the writ, identifying the property and the statutory basis (for example, the $7,500 personal property exemption under § 6-10-6 or a federal benefit exemption). Alabama also allows you to record a declaration of claimed exemptions, including a homestead declaration, with the probate court in advance.
- Watch the deadline. Courts set a short window to contest a garnishment after you receive notice. Because missing it can waive your protection, respond immediately rather than waiting — confirm the exact response time on the court papers you were served.
- Document the source of bank funds. If your account holds Social Security, unemployment, or wages, gather deposit records and statements showing the funds are exempt. The burden is often on you to trace protected money.
- Get a court ruling. If the creditor contests your claim, the court holds a hearing and decides what is exempt. Until then, do not assume the freeze will be lifted on its own.
Separately, federal law backs you up on collector conduct. The federal Fair Debt Collection Practices Act (FDCPA) bars third-party debt collectors from harassment, false threats, and misrepresenting what they can seize, and the Fair Credit Reporting Act (FCRA) governs how a judgment and related collection activity appear on your credit report. These do not change what is exempt, but they limit how a collector may pursue you.
Where to verify Alabama's rules
Because several of these figures — especially the homestead and personal property amounts — are indexed and change periodically, verify the current numbers before relying on them. The authoritative text is the Code of Alabama, Title 6, Chapter 10, available through the Alabama Legislature's official website. For consumer help and complaints about abusive collection practices, contact the Office of the Alabama Attorney General, Consumer Protection Section, which accepts complaints and publishes consumer guidance for Alabama residents. For wage-garnishment math tied to the federal minimum wage, the U.S. Department of Labor's Wage and Hour Division is the official source. Given that exemptions can be lost by missing a deadline or misallocating the $7,500 cap, many Alabama debtors facing a large judgment consult a licensed Alabama attorney or a nonprofit legal-aid office before responding.
Official Alabama Sources
This page is based on Alabama law. Limits and deadlines change — verify the current details directly with the official Alabama sources below. This is general legal information, not legal advice.
Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Alabama’s own rules.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
