Stop Wage Garnishment in Alabama: Your 2024 Guide

If you owe money to a creditor in Alabama, you face serious risks. Alabama enforces some of the strictest wage garnishment laws in the nation.

A creditor who wins a judgment against you can take a large portion of your paycheck. You need to act fast to protect your earnings and avoid financial disaster.

Stop Alabama Wage Garnishment Before It Starts

File your Answer to the debt lawsuit and negotiate a settlement before creditors take 25% of your paycheck. Our partner Solo helps you respond to lawsuits and settle debts for less than you owe.

Respond to Lawsuit Now

You have options to stop wage garnishment before it starts. Understanding Alabama’s laws helps you defend yourself effectively.

Alabama Allows Creditors to Garnish 25% of Your Wages

The federal government sets baseline wage garnishment limits for all states. Some states offer stronger protections to help struggling debtors.

Alabama is not one of those states. Alabama follows federal rules exactly, making it harsh for debtors.

Under Ala. Code § 5-19-15, creditors who win judgments can garnish the lesser of:

25% of your weekly disposable earnings
The amount your disposable earnings exceed 30 times the federal minimum wage ($7.25)

Your disposable earnings equal your salary after mandatory withholdings like taxes. Alabama does not count voluntary deductions like insurance premiums as required withholdings.

Those amounts remain part of your disposable earnings subject to garnishment.

Example of Alabama Wage Garnishment

Sarah takes out a $2,000 personal loan she cannot repay. The creditor sues and wins a judgment in Alabama court.

Sarah earns $800 weekly after taxes. The creditor can garnish $200 per week (25% of $800).

That’s the lesser amount since $800 minus (30 × $7.25) equals $582.50. Sarah will pay $200 weekly for 10 weeks until the debt is satisfied.

Losing $200 weekly makes it hard to afford rent, food, and transportation. You want to avoid this situation at all costs.

How to Protect Yourself Before Wage Garnishment Starts

Creditors file lawsuits when you stop paying debts. A debt collection lawsuit requires immediate action on your part.

Ignoring the lawsuit guarantees you lose. The creditor will get a default judgment and start garnishing your wages.

Respond to the Summons and Complaint

You receive two documents when a creditor sues you: a Summons and a Complaint. The Summons lists your court date and location.

The Complaint explains why the creditor is suing you. It includes the debt amount, account number, and other details.

Review the Complaint carefully for errors. Check if the amount matches your records.

Look for other problems like incorrect dates or wrong account information. You can use these discrepancies in your defense.

File an Answer to the Lawsuit

An Answer is your written response to the lawsuit. You list your defenses in this document.

Common defenses include statute of limitations violations or lack of debt validation. You might argue the creditor lacks proof you owe the debt.

Even without strong defenses, you must file an Answer. Filing prevents a default judgment against you.

The judge will hear your side before making a decision. Our partner Solo makes filing an Answer simple and fast.

You answer questions online and an attorney reviews your document. Your deadline to respond is usually 14 to 30 days from receiving the Summons.

Missing this deadline means automatic loss and wage garnishment.

Stop Garnishment Through Debt Settlement

After filing your Answer, you need a strategy to resolve the lawsuit. You have three main options: repay the full debt, settle for less, or file bankruptcy.

Bankruptcy should only be considered if your financial situation is truly hopeless.

Repay the Full Debt

Paying the entire debt immediately stops the lawsuit. The creditor must dismiss its legal claim since you no longer owe money.

You eliminate the risk of wage garnishment completely. However, most people facing lawsuits cannot afford full repayment.

Negotiate a Settlement for Less

Debt settlement offers a realistic alternative when you lack funds for full repayment. You offer the creditor a lump sum payment for less than the total debt.

The creditor agrees to forgive the remaining balance and drop the lawsuit. You need to make a serious offer to get creditor attention.

Offering at least 50-60% of the debt amount is a good starting point. Creditors compare your offer against the cost of collecting through court.

Going to court costs them time and money with no guarantee of collection. Our partner Solo helps you negotiate settlements that work for your budget.

You make offers through their platform and communicate with creditors without phone calls. Many creditors accept settlement offers to avoid lengthy court battles.

File a Claim of Exemption to Stop Active Garnishment

Your wages may already be garnished when you discover your options. Alabama allows you to file a Declaration and Claim of Exemption for Wages.

You complete this form to ask the court to protect your paycheck. You must prove the garnishment prevents you from affording basic living expenses.

Basic expenses include food, shelter, utilities, and transportation to work. When the court grants your exemption, the creditor must stop taking money from your paycheck.

Important note: You still owe the judgment debt. The creditor can try collecting through other methods like bank account levies.

Filing a claim of exemption buys you time to arrange payment or settlement. Download the Declaration and Claim of Exemption for Wages from Alabama legal aid websites.

Complete the form accurately and file it with the court handling your case. Attend any hearings scheduled to review your exemption claim.

Take Action Before Creditors Seize Your Earnings

Getting sued doesn’t mean you automatically lose to the creditor. Protecting yourself requires quick action and the right strategy.

File your Answer within the deadline to avoid default judgment. Then choose between repayment, settlement, or exemption based on your situation.

If wages are already being garnished, file for exemption immediately. Every day counts when protecting your income from creditors.

You have legal rights in Alabama despite strict garnishment laws. Exercise those rights to keep more of your hard-earned money.

Frequently Asked Questions

What percentage of wages can be garnished in Alabama?

Alabama creditors can garnish the lesser of 25% of your weekly disposable earnings or the amount exceeding 30 times the federal minimum wage ($7.25). For most workers, this means losing 25% of your take-home pay each week until the debt is satisfied.

How do I stop wage garnishment before it starts in Alabama?

File an Answer to the debt lawsuit within the deadline stated on your Summons (usually 14-30 days). Then negotiate a settlement with the creditor for less than you owe, or arrange to repay the full debt. Filing an Answer prevents default judgment and gives you time to resolve the debt.

Can I stop wage garnishment that's already happening in Alabama?

Yes, you can file a Declaration and Claim of Exemption for Wages with the court. You must prove the garnishment prevents you from affording basic living expenses like food, shelter, and transportation. If granted, the creditor must stop taking money from your paycheck, though you still owe the debt.

What happens if I ignore a debt lawsuit in Alabama?

Ignoring a debt lawsuit results in a default judgment against you. The creditor automatically wins and can immediately start garnishing 25% of your wages. You lose the opportunity to defend yourself, settle for less, or negotiate payment terms.

How long does wage garnishment last in Alabama?

Wage garnishment continues until you satisfy the full judgment amount, including the original debt, court costs, and interest. For a $2,000 judgment with 25% garnishment on $800 weekly wages, you'd pay $200 per week for approximately 10 weeks.

How to Stop Wage Garnishment in Alabama (2024 Guide)