Alabama laws on Wage Garnishments, Statute of Limitation on Debt, and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTIONS
75% of wages are exempt from garnishment in Alabama. Wages can be garnished in Alabama without a court judgment for delinquent child support (50%), income taxes (varies) and student loans (15%).
MAXIMUM INTEREST RATES
Legal: 6% Judgments: Same as stated in contract, otherwise 7.5% [8-8-10]
STATUTE OF LIMITATIONS ON DEBT COLLECTION
Open Account (credit card): 3 years
Written Contract: 6 years
Domestic Judgment: 20 years
Foreign Judgment: 20 years
BAD CHECK FEES $30 [8-8-15]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
ALABAMA BANKRUPTCY PROPERTY EXEMPTIONS
Real property: Real property up to 160 acres or mobile home up to $5,000 (husband and wife may double the amount); must file homestead exemption [6-10-2]
Personal property: Burial plot, unlimited amount [6-10-5]; church pew, unlimited amount [6-10-5]; personal property not listed elsewhere (except life insurance) up to $3,000 [6-10-6]; unlimited amount of books and clothing [6-10-6]; unlimited amount of family portraits and pictures [6-10-6]; Unlimited amount of uniforms, equipment, arms required for military [31-2-78]; crops, unlimited amount [6-9-41]
Insurance / Annuities: Annuity proceeds to $250 per month [27-14-32]; disability proceeds to $250 per month [27-14-31]; fraternal society benefits, unlimited amount [27-34-27]; proceeds from life insurance if beneficiary is insured's spouse or child, unlimited amount [6-10-8 and 27-14-29]; life insurance proceeds if policy prohibits use to pay beneficiary's creditors, unlimited amount [27-15-26]; mutual aid association benefits, unlimited amount [27-30-25]
Pensions / Retirement Plans: Law enforcement officers, unlimited amount [36-21-77]; judges (payments being received) [12-18-10(a-b); state employees, unlimited amount [36-27-28]; teachers, unlimited amount [16-25-23]
Public Benefits / Entitlements: AFDC, aid to blind, aged, disabled families with dependent children, unlimited amount [38-4-8]; coal miners' pneumoconiosis benefits, unlimited amount [25-5-179]; Southeast Asian War POW's benefits, unlimited amount [31-7-2]; unemployment compensation, unlimited amount [25-4-140]; workers' compensation, unlimited amount [25-5-86(b)]
Wages: 75% of earned but unpaid wages (special provisions for low-income workers) [6-10-7]
Wildcard: Up to $3,000 of personal property (excluding wages) [6-10-6]
This page was last updated and checked for accuracy in December 2013.
