Alabama Wage Garnishment Laws: How Much Can They Take?

In Alabama, a creditor with a court judgment can garnish your wages, but state law caps how much they can take. Under Alabama Code § 6-10-7, 75% of the wages, salary, or other compensation you earn for personal services is exempt from garnishment for an ordinary debt — which means a creditor can reach at most 25% of your disposable earnings. This mirrors the federal ceiling under the Consumer Credit Protection Act (CCPA), and Alabama does not offer a lower cap for most consumer debts. That also means Alabama is not one of the handful of states (such as North Carolina, South Carolina, Pennsylvania, and Texas) that bar wage garnishment for ordinary debts altogether. The good news: Alabama gives you a clear way to claim exemptions, and for lower earners the federal floor often protects even more of your pay.

The Basic Rule: 25% Maximum for Ordinary Debts

When you owe a typical consumer debt — a credit card balance, medical bill, personal loan, or deficiency on a repossessed car — the creditor must first sue you, win a judgment, and then ask the court for a "process of garnishment" directed at your employer. Once that happens, the amount taken from each paycheck is limited by two overlapping rules, and the creditor can only take the smaller of the two:

• Alabama's 75% exemption: 75% of your disposable earnings is protected, so no more than 25% can be garnished (Ala. Code § 6-10-7).
• The federal CCPA floor: Under 15 U.S.C. § 1673, a creditor cannot touch any disposable earnings up to 30 times the federal minimum wage per week. The federal minimum wage is $7.25 per hour as of 2026, which sets that weekly floor at about $217.50. Because Alabama has no separate state minimum wage, the federal figure applies. Confirm the current federal minimum wage with the U.S. Department of Labor before relying on the exact dollar amount.

"Disposable earnings" means what's left after legally required deductions — federal and state taxes, Social Security, and Medicare. It does not subtract voluntary deductions like a 401(k) contribution or health insurance premium. So the 25% is calculated on a larger number than your take-home pay.

For low-wage workers, the federal floor frequently shields more than the flat 25% rule. If your weekly disposable earnings are at or below roughly $217.50, none of your wages can be garnished for an ordinary judgment debt. Above that, the creditor takes the lesser of 25% or the amount exceeding the floor.

A Quick Example

Say your disposable earnings are $600 a week. Twenty-five percent is $150. The amount above the federal floor is $600 − $217.50 = $382.50. The creditor takes the smaller number, so the garnishment is capped at $150 that week. If instead you earned $260 in disposable pay, 25% would be $65, but the amount over the floor would be only $42.50 — so the creditor could take just $42.50.

Debts That Can Take More Than 25%

The 25% cap protects you against ordinary creditors, but several categories of debt are treated differently and can reach a larger share of your pay:

• Child support and alimony: Under the federal CCPA, support orders can garnish up to 50% of disposable earnings if you support another spouse or child, and up to 60% if you do not — plus an extra 5% if you are more than 12 weeks behind. Alabama enforces these limits for income-withholding orders.
• Unpaid federal taxes: The IRS does not use the 25% rule. It uses its own tables based on your filing status and dependents, and can leave you with comparatively little.
• Federal student loans: The U.S. Department of Education can garnish up to 15% of disposable pay through administrative wage garnishment without first going to court.
• State taxes: The Alabama Department of Revenue has its own collection powers for delinquent state taxes.

Income and Property That Is Fully Exempt

Some money cannot be garnished at all, regardless of the 25% rule, because federal or Alabama law protects the source. Generally exempt funds include:

• Social Security, SSI, and SSDI benefits
• Veterans' benefits
• Federal civil service and railroad retirement
• Unemployment compensation and workers' compensation
• Most public assistance and welfare benefits

These protections follow the money even after it lands in your bank account, but only if the funds are identifiable. If exempt deposits are mixed with other money, you may have to prove which dollars came from a protected source. Banks are required by federal rule to automatically protect a cushion of recently deposited federal benefits in some account-garnishment situations, but you should still act quickly if a protected account is frozen.

Alabama also gives every resident a general personal property exemption under Ala. Code § 6-10-6, which can be used to protect money in a bank account and other personal property from collection. The statutory amount has been indexed to inflation since 2015 and rises periodically, so do not rely on an old figure — check the current amount with the Alabama court system or the State Treasurer's published exemption values before claiming it. Wages already paid to you that you've deposited may be claimed under this exemption as well.

How to Claim Your Exemption and Stop or Reduce a Garnishment

Alabama exemptions are not always applied automatically — in many cases you must assert them in writing, and quickly. If you've been served with garnishment papers, take these steps:

• Read every document and note the deadlines. The garnishment notice and any "Notice of Right to Claim Exemptions" will tell you how long you have to respond. Missing the window can cost you protections you were entitled to.
• File a written claim of exemptions with the court. Alabama provides a process for declaring exempt wages and personal property (see Ala. Code § 6-10-20 and following). File it with the clerk of the court that issued the garnishment and serve a copy on the creditor.
• Challenge an over-collection. If your employer is withholding more than 25% (or more than the federal floor allows), object in writing — the cap is mandatory.
• Point out exempt income. If the garnishment hits a bank account holding Social Security or other protected funds, raise that immediately so the court can release those dollars.
• Watch for the second garnishment. Federal law (15 U.S.C. § 1674) bars your employer from firing you because of a single garnishment for one debt.

If the underlying judgment is wrong — for example, the debt isn't yours, was already paid, or is past Alabama's statute of limitations — you may be able to challenge the judgment itself rather than just the garnishment. Bankruptcy can also stop most wage garnishments immediately through the automatic stay, though that is a major decision worth discussing with a licensed attorney.

Where to Verify and Get Help

Because exemption dollar amounts adjust over time and procedures can change, confirm the current rules before acting. Reliable Alabama sources include:

• The Alabama Attorney General's Consumer Protection Section — the state office that handles consumer complaints and publishes consumer guidance.
• The Alabama Code (Title 6, Chapter 10) — the controlling exemption and garnishment statutes, available through the Alabama Legislature's official site.
• The clerk of the court that issued your garnishment, for the correct local forms and deadlines.
• Legal Services Alabama or a licensed Alabama consumer attorney for case-specific advice.

Federal protections layer on top of Alabama law: the CCPA sets the garnishment caps and anti-firing rule, the Fair Debt Collection Practices Act (FDCPA) limits how third-party collectors can pursue you, and the Fair Credit Reporting Act (FCRA) governs how the debt appears on your credit report. Knowing both the Alabama 25% rule and these federal baselines puts you in a far stronger position to protect your paycheck.

This article is general information, not legal advice. For help with your specific situation, consult a licensed Alabama attorney.

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.

• Alabama Attorney General's Office - Consumer Interest Division — official Alabama agency.
• File a Consumer Complaint - Alabama Attorney General's Office

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.