Fill and Sign the Consumer Credit Act Alabama State Banking Department Form

State of Alabama Unified Judicial System Form C-24A/C Rev. 8/97 GARNISHMENT PROVISIONS FOR CONSUMER DEBTS GARNISHMENT PROVISIONS FOR NON-CONSUMER DEBTS Case Number Garnishment Provisions of the Alabama Consumer Credit Act (Section 5-19-15, Code of Alabama 1975) TO BE USED FOR GARNISHMENTS INVOLVING DEBTS ARISING FROM CONSUMER LOANS, CONSUMER CREDIT SALES AND CONSUMER LEASES A person who has “disposable earnings” of less than a certain amount per week cannot be garnished in any amount for debts arising from consumer loans, consumer credit sales, and consumer leases. For debts or demands created BEFORE April 12, 1988, the amount is $257.50. For debts or demands created ON OR AFTER April 12, 1988, this amount is $154.50. This is due to the federal minimum wage increase to $5.15 per hour for most workers, and the resulting increase in the amount of wages, salary, or other compensation exempt from ga rnishment under the Alabama Consumer Credit Act. DISPOSABLE EARNING DEFINED: An employee’s “disposable earnings” means that part of earnings of an individual remaining after deduction of amounts required by law to be withheld such as federal income tax, federal social security tax and state and local taxes. For debts or demands created BEFORE April 12,1988, the Alabama C onsumer Credit Act limits wages, salary or other compensation subject to garnishment to the LESSER of: (a) 20% of a person’s disposable earnings for the week; OR (b) Disposable earnings for the week less $257.50 (50 times the minimum wage - $5.15 per hour) Example 1: If an employee’s gross earnings in a particular week are $400, and after deductions made as outlined above, the disposable earnings ar e $350, apply the test as follows: (a) 20% times $350 = $70 OR (b) $350 less $257.50 = $92.50 In this example, only $70 may be garnished for the week, si nce $70 is less than $92.50, and $280 would be paid to the employee ($350 disposable earnings less the garnished $70) For debts or demands created ON OR AFTER April 12, 1988, the Alabama Consumer Credit Act limits wages, salary or other compensation subject to garnishment to the LESSER of: (a) 20% of a person’s disposable earnings for the week; OR (b) Disposable earnings for the w eek less $154.50 (30 times the minimum wage - $5.15) Example 2: If an employee’s gross earnings in a particular week are $280, and after deductions made as outlined above, the disposable earnings are $240, appl y the test as follows: ($5.15 x 30 =$154.50) (a) 20% times $240 = $60 OR (b) $240 less $154.50 = $85.50 In this example, only $60 may be garnished for the week, si nce $60 is less than $85.50, and $180 would be paid to the employee ($240 disposable earnings less the garnished $60). NOTE: When the federal minimum wage increases, then the above tests and examples would use the current minimum wage instead of $5.15. PROTECTION AGAINST DISCHARGE FROM EMPLOYMENT: Ti tle 15, §1674 of the United States Code, prohibits an employer from discharging any em ployee because earnings have been subject to garnishment for any one indebtedness. ………………………………………………\ …………………………..IMPORTANT………………………………………………\ ……………………………. IF THE GARNISHEE FAILS TO FILE A SWORN ANSWER WITHIN 30 DAYS FROM THE DATE THE WRIT IS RECEIVED, THE PLAINTIFF (PERSON ASSERTING CLAIM) MAY PROCEED FOR JUDGMENT AGAINST THE GARNISHEE FOR THE AMOUNT OF THE PLAINTIFF’S CLAIM PLUS COURT COSTS. THE ANSWER MA Y BE MAILED TO THE COURT CLERK PROMPTLY AFTER BEING SERVED BY THE SHERIFF. CONTACT AN ATTORNEY IF YOU NEED FURTHER ASSISTANCE. THE COURT CLERK AND OTHER COURT PERSONNEL CANNOT GIVE YOU LEGAL ADVICE. Form C-24A/C (Back) Rev. 8/97 Garnishment Provisions of 15 U.S.C. § 1673 and §6-10-7, Code of Alabama 1975 TO BE USED FOR GARNISHMENTS INVOLVING DEBTS NOT ARISING FROM CONSUMER LOANS, CONSUMER CREDIT SALES AND CONSUMER LEASES A person who has “disposable earnings” of less than a certain amount per week cannot be garnished in any amount for debts arising from consumer loans, consumer credit sales, and consumer leases. For debts or demands created BEFORE April 12, 1988, the amount is $257.50. For debts or demands created ON OR AFTER April 12, 1988, this amount is $154.50. This is due to the federal minimum wage increase to $5.15 per hour for most workers, and the resulting increase in the amount of wages, salary, or other compensation exempt from ga rnishment under the Alabama Consumer Credit Act. DISPOSABLE EARNING DEFINED: An employee’s “disposable earnings” means that part of earnings of an individual remaining after deduction of amounts required by law to be withheld such as federal income tax, federal social security tax and state and local taxes. Alabama and federal law limit wages, salary or other co mpensation subject to garnishment to the LESSER of: (a) 25% of a person’s disposable earnings for the week; OR (b) Disposable earnings for the week less $154.50 (30 times the minimum wage - $5.15 per hour) The following examples illustrate how to determine how much of an employee’s wages, salary or other compensation can be garnished: Example 1: If an employee’s gross earnings in a particular week are $270, and after deductions made as outlined above, the disposable earnings ar e $230, apply the test as follows: (a) 20% times $230 = $46 OR (b) $230 less $154.50 = $75.50 In this example, only $46 may be garnished for the week, si nce $46 is less than $75.50, and $184 would be paid to the employee ($230 disposable earnings less the garnished $46) Example 2: If an employee’s gross earnings in a particular week are $280, and after deductions made as outlined above, the disposable earnings are $240, apply the test as follows: ($5.15 x 30 =$154.50) (a) 25% times $240 = $60 OR (b) $240 less $154.50 = $85.50 In this example, only $60 may be garnished for the week, si nce $60 is less than $85.50, and $180 would be paid to the employee ($240 disposable earnings less the garnished $60). NOTE: When the federal minimum wage increases, then the above tests and examples would use the current minimum wage instead of $5.15. PROTECTION AGAINST DISCHARGE FROM EMPLOYMENT: Title 15, §1674 of the United States Code, prohibits an employer from discharging any employee because earnings have been subj ect to garnishment for any one indebtedness. ………………………………………………\ …………………………..IMPORTANT………………………………………………\ ……………………………. IF THE GARNISHEE FAILS TO FILE A SWORN ANSWER WITHIN 30 DAYS FROM THE DATE THE WRIT IS RECEIVED, THE PLAINTIFF (PERSON ASSERTING CLAIM) MAY PROCEED FOR JUDGMENT AGAINST THE GARNISHEE FOR THE AMOUNT OF THE PLAINTIFF’S CLAIM PLUS COURT COSTS. THE ANSWER MA Y BE MAILED TO THE COURT CLERK PROMPTLY AFTER BEING SERVED BY THE SHERIFF. CONTACT AN ATTORNEY IF YOU NEED FURTHER ASSISTANCE. THE COURT CLERK AND OTHER COURT PERSONNEL CANNOT GIVE YOU LEGAL ADVICE. State of Alabama Unified Judicial System Form C-24D Rev. 8/97 NOTICE TO DEFENDANT OF RIGHT TO CLAIM EXEMPTION FROM GARNISHMENT Case Number IN THE ___________________________COURT OF _______________________________COUNT\ Y, ALABAMA ___________________________________________ v. _________________________\ ______________________________ Plaintiff (Person Asserting Claim) : Defendant (Person Whose Property is Subject to Garnishment) : Address: Address: A Process of Garnishment has been delivered to you. This means that a court may order your wages, money in a bank, sums owned to you, or other property belonging to you, to be paid into court to satisfy a judgment against you. Laws of the State of Alabama and of the United Stat es provide that in some circum stances certain money and property may not be taken to pay certain types of court judgments, because certain money or property may be “exempt” from garnishment. For example, under state law, in some circumstances, up to $3,000.00 in w ages, personal property, including money, bank accounts, automobiles, appliances, etc., may be exempt from proce ss of garnishment. Similarly, under federal law, certain benefits and certain welfare payments may be exempt from garnishment. Benefits and payments ordinarily exempt from garnishment include, for example, social security paym ents, SSI payments, veteran’s benefits, TANF (welfare) payments, unemployment compensati on payments, and worker’s compensation payments. THESE EXAMPLES ARE FOR PURPOSE OF ILLUSTRATION ONLY. WHETHER YOU WILL BE ENTITLED TO CLAIM ANY EXEMPTION FROM THE PROCESS OF GARNISHMENT, A ND, IF SO, WHAT PROPERTY MAY BE EXEMPT, WILL BE DETERMINED BY THE FACTS IN YOUR PARTICULAR CASE. IF YOU ARE UNCERTAIN AS TO YOUR POSSIBLE EXEMPTION RIGHTS, YOU SHOULD CONSULT A LAWYER FOR ADVICE. TO CLAIM ANY EXEMPTION THAT MAY BE AVAILABLE TO YOU, YOU MUST PREPARE A “CLAIM OF EXEMPTION” FORM LISTING ON IT ALL YOUR WAGES AND PERSONAL PROPERTY; HAVE THE CLAIM OF EXEMPTION NOTARIZED; AND FILE IT IN THE CLERK’S OFFICE. ALS O, IT IS YOUR RESPONSIBILITY TO MAIL OR DELIVER A COPY OF THE CLAIM OF EXEMPTION TO THE PLAINTI FF WHO HAS A JUDGMENT AGAINST YOU. YOU MUST INDICATE ON THE CLAIM OF EXEMPTION THAT YOU FILE IN THE CLERK’S OFFICE WHETHER YOU MAILED OR DELIVERED THE COPY TO THE PLAINTIFF AND THE DATE ON WHICH YOU MAILED OR DELIVERED IT. THE CLERK CANNOT GIVE YOU LEGAL ADVICE. IF YOU NEED ASSISTANCE, YOU SHOULD SEE A LAWYER. If you file a claim of exemption, the pl aintiff will have approximately ten (10) days to file a “c ontest” of your claim of exemption. If a contests is filed, a court hearing will be scheduled and you will be notified of the time and place of the hear ing. If the plaintiff does not file a contest, the property claimed by you as exempt will be released from the garnishment. If you do not file a claim of exemption, your property may be turned over to the court and paid to the plaintiff on the judgment against you. TO PROTECT YOUR RIGHTS, IT IS IMPORTANT THAT YOU ACT PROMPTLY. IF YOU HAVE ANY QUESTIONS, YOU SHOULD CONSULT A LAWYER. NOTE: This form must be included with any locally-generated “Process of Garnishment” form. State of Alabama Unified Judicial System Form C-24J Rev. 8/98 CONDITIONAL JUDGMENT AGAINST GARNISHEE AND NOTICE TO GARNISHEE (§ 6-6-457, Code of Alabama 1975) Case Number IN THE ______________________________________COURT OF _____________________________________, ALABAMA (Circuit or District) (Name of County) ___________________________________________ v. _________________________\ ______________________________ Plaintiff Defendant Garnishee: ____________________________________________________________________\ _______________________ Address: __________________________________________________________________\ _________________________ Comes the plaintiff, by his or her attorney, and move s for conditional judgment against the above-named garnishee; and it appearing to the court that on (date) __________________________, the plaintiff recovered a judgment against the defendant for the sum of $ ____________________, plus court costs, and that a Writ of Garnishment on the judgment was duly issued in this cause by the clerk of this court, and duly served upon the garnishee on (date) _______________________ and that the garnishee has failed to file an Answer thereto within the time required by law; IT IS, THEREFORE, considered, ordered and adjudged by the c ourt that the plaintiff have and recover of the garnishee the sum of $ _____________________, plus court costs, unless within thirty (30) days of service of process of this conditional judgment against Garnishee and Notice to Garnishee, the gar nishee appears and shows cause why this conditional judgment should not be made final and absolute. _______________________________________ __________________________________________________ Date Judge To Any Sheriff or Any other Authorized Person: You are hereby commanded to serve this Conditional Judgment against Garnishee and Notice to Garnishee on the above-named garnishee and make proper return to this court. _______________________________________ __________________________________________________ Date Clerk RETURN ON SERVICE Return receipt of certified ma il received in this office on _______________________________________________________ (Date) I certify that I personally delivered a copy of the Conditional Judgment against Garnishee and Notice to Garnishee to _______________________________________ on ________________________\ _______________. (Date) _______________________________________ _________________________________________________________ Date Server’s Signature _______________________________________ _________________________________________________________ Business Address of Server Type of Process Server _______________________________________ City State Zip Code State of Alabama Unified Judicial System Form C-24K Rev. 8/98 FINAL JUDGMENT AGAINST GARNISHEE Case Number IN THE __________________________________COURT OF _________________________________________, ALABAMA (Circuit or District) (Name of County) _______________________________________________ v. _____________________\ _______________________________ Plaintiff Defendant On__________________(date), a Conditional Judgment was entered against the garnishee, ________ _____________________________________________. The above-name garnishee was served with the C onditional Judgment against Garnishee and Notice of Garnishee on ________________(date), by delivering a copy of same to _\ ________________________________. Because the garnishee failed to appear and answer the Conditional Judgment within 30 days of the service date, judgment is hereby made final of the sum of $ __________________________ plus court costs in this matter. ____________________________________________ Judge ____________________________________________ Date