Alabama wage garnishment limits cap most creditors at 25% of your disposable earnings for ordinary debts like credit cards, medical bills, and personal loans. That ceiling comes from Alabama Code Section 6-10-7 and works alongside a federal rule that protects more of your pay if you earn less.1Alabama Legislature. Alabama Code 6-10-7 – Wages, Salaries, or Other Compensation of Laborers or Employees for Personal Services Child support, tax debts, and federal student loans follow different, higher limits, and certain benefits stay off-limits no matter what.
The 25% Cap and the Federal Floor
Disposable earnings are what’s left in your paycheck after mandatory deductions for federal and state taxes, Social Security, and Medicare. Your employer withholds 25% of that amount and pays it into court until the judgment is satisfied.1Alabama Legislature. Alabama Code 6-10-7 – Wages, Salaries, or Other Compensation of Laborers or Employees for Personal Services
Federal law adds a second protection that matters most at lower wages. Under the Consumer Credit Protection Act, the garnishable amount each week is the lesser of 25% of disposable earnings or the amount by which those earnings exceed 30 times the federal minimum wage of $7.25 per hour. That works out to $217.50 per week. If your weekly disposable earnings are $217.50 or less, nothing can be garnished for an ordinary debt.2Office of the Law Revision Counsel. 15 USC 1673 – Restriction on Garnishment
The two rules overlap for most earners. Someone with $500 a week in disposable earnings would owe the lesser of $125 (25% of $500) or $282.50 ($500 minus $217.50). The creditor gets $125 because that’s the smaller number. The 30-times-minimum-wage test really bites at lower pay levels, where it can shrink or eliminate the garnishment.3U.S. Department of Labor. Fact Sheet 30 – Wage Garnishment Protections of the Consumer Credit Protection Act
For any of this to happen with an ordinary debt, the creditor first has to sue you and win a money judgment. Government debts for taxes and student loans are the exception.
Child Support and Alimony Take More
Family support obligations follow a different scale, and the numbers are much higher. Federal law sets the ceilings, and they override Alabama’s standard 25% cap.2Office of the Law Revision Counsel. 15 USC 1673 – Restriction on Garnishment
If you’re currently supporting another spouse or child, up to 50% of your disposable earnings can be taken, rising to 55% if you’re more than 12 weeks behind. If you’re not supporting another spouse or child, the limit is 60%, rising to 65% for arrears of more than 12 weeks. The 12-week measurement runs from the beginning of the current workweek backward, checking whether the overdue support order covers a period that old.4Administration for Children and Families. Is There a Limit to the Amount of Money That Can Be Taken From My Paycheck for Child Support
Social Security and Social Security Disability payments, while shielded from ordinary creditors, can be reached for child support and alimony. Supplemental Security Income stays fully protected even from family support orders.5Consumer Financial Protection Bureau. Can a Debt Collector Take My Federal Benefits, Like Social Security or VA Payments
IRS Levies and Federal Student Loans
The IRS doesn’t need a lawsuit and doesn’t follow the 25% cap. A tax levy is calculated in reverse: the IRS looks at your filing status, pay period, and number of dependents, sets an exempt amount, and takes everything above it. For 2026, a single filer paid weekly with no dependents keeps roughly $282 per paycheck, with about $31.73 more per week for each dependent claimed.6Internal Revenue Service. Publication 1494 – Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income For a typical salary, that can leave the IRS taking well over 25%.
Defaulted federal student loans carry a separate administrative garnishment power. Under the Debt Collection Improvement Act, federal agencies can garnish up to 15% of your disposable pay for delinquent nontax debts without going to court.7Federal Register. Administrative Wage Garnishment The Department of Education paused most involuntary collections during the pandemic-era relief period, and whether collections have fully resumed depends on ongoing policy changes. Borrowers in default should check with their loan servicer or the Federal Student Aid website for current status.
Income and Property Creditors Cannot Reach
Some money is off-limits to private creditors regardless of what a judgment says. Social Security, Supplemental Security Income, and Veterans’ benefits are generally protected, along with federal retirement and disability benefits, military pay and survivor benefits, and FEMA assistance.5Consumer Financial Protection Bureau. Can a Debt Collector Take My Federal Benefits, Like Social Security or VA Payments Section 207 of the Social Security Act specifically bars those payments from garnishment, levy, or attachment.8Social Security Administration. SSR 79-4 – Levy and Garnishment of Benefits
If those benefits are direct-deposited, the protection follows them into your bank account. When a bank receives a garnishment order, it must review the last two months of deposits. Any direct-deposited federal benefits within that two-month window stay available to you, even though the account itself is subject to garnishment for other funds.5Consumer Financial Protection Bureau. Can a Debt Collector Take My Federal Benefits, Like Social Security or VA Payments
Alabama also shields a set dollar amount of personal property from levy under Section 6-10-6. As of April 2024, the personal property exemption is $9,400.9U.S. Bankruptcy Court, Southern District of Alabama. Alabama Exemption Amounts The figure is adjusted periodically, so confirm the current amount when you file a claim.
How to Challenge a Garnishment
If some or all of the money being taken is exempt, Alabama Code Section 6-10-37 lets you file a claim of exemption in the court where the garnishment case is pending. The claim has to be sworn under oath, and it must describe the property or money you’re claiming and its value.10Alabama Legislature. Alabama Code 6-10-37 – Contest of Exemption Claim
Timing is the whole game. You need to file before the court enters a judgment of condemnation, the order that releases the garnished funds to the creditor. The law requires the sheriff to serve you with written notice at least five days before any condemnation, and if you never got that notice, a condemnation entered without it doesn’t wipe out your exemption rights.10Alabama Legislature. Alabama Code 6-10-37 – Contest of Exemption Claim
Once you file, the creditor has 15 days to contest the exemption. If the creditor doesn’t respond, your claim stands. If the creditor challenges it, the court holds a hearing, and you can ask the court to pause the garnishment in the meantime. Waiting is costly. After the court enters a condemnation and disburses the money, recovering it is much harder.
Your Job Is Protected, With a Limit
Federal law bars your employer from firing you because your wages are being garnished for any one debt. Violating that protection is a federal crime punishable by a fine of up to $1,000, up to one year in jail, or both.11Office of the Law Revision Counsel. 15 USC 1674 – Restriction on Discharge from Employment by Reason of Garnishment
The shield covers a single indebtedness. If a second, unrelated creditor also garnishes your pay, the federal protection no longer applies. Resolving one of the garnishments quickly can be enough to keep the protection in place.