Consumer Credit Act

Alabama Garnishment Forms

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.

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 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 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 are $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, since $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 week 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, apply the test as follows:

(a) 20% times $240 = $60 OR (b) $240 less $154.50 = $85.50

In this example, only $60 may be garnished for the week, since $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 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 may proceed for judgment against the garnishee for the amount of the plaintiff’s claim plus court costs. The answer may 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.

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 compensation 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 are $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, since $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, since $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 subject to garnishment for any one indebtedness.

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 County, Alabama

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 States provide that in some circumstances 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.

These examples are for purpose of illustration only. Whether you will be entitled to claim any exemption from the process of garnishment, and, if so, what property may be exempt, will be determined by the facts in your particular case.

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.

If you file a claim of exemption, the plaintiff will have approximately ten (10) days to file a “contest” of your claim of exemption. If a contest is filed, a court hearing will be scheduled and you will be notified of the time and place of the hearing.

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.

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

Case Number:

In the Court of , Alabama

Plaintiff:

Defendant:

Garnishee:

Address:

Comes the plaintiff, by his or her attorney, and moves 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 was duly issued and served upon the garnishee on

IT IS, THEREFORE, considered, ordered and adjudged by the court 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 garnishee appears and shows cause why this conditional judgment should not be made final and absolute.

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.

RETURN ON SERVICE

Return receipt of certified mail received in this office on

I certify that I personally delivered a copy of the Conditional Judgment against Garnishee and Notice to Garnishee to on

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

Plaintiff:

Defendant:

On a Conditional Judgment was entered against the garnishee,

The above-name garnishee was served with the Conditional Judgment against Garnishee and Notice of Garnishee on 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.