DocDraft Logo

Alabama Claim of Exemption

File an Alabama claim of exemption to stop wage garnishment. Learn what pay is exempt, that 75 percent of earnings is protected, and how to file it.

Introduction

An Alabama claim of exemption is a form you file with the court to protect some or all of your wages or bank funds from a garnishment. An exemption is money the law says a creditor cannot take. After a creditor wins a money judgment, it can serve a garnishment on your employer and pull money from every paycheck. In Alabama you file a written claim of exemption, verified by oath, with the clerk of the court that issued the garnishment, and you must file it before the court enters a judgment of condemnation that hands the held money to the creditor. Alabama protects 75 percent of your disposable earnings, more than many debtors expect, and some income like Social Security is off limits entirely. Because there is no fixed day count, act as soon as you learn of the garnishment. DocDraft prepares an Alabama claim of exemption from your details, and attorney review is available before you file.

0/5000

Key Things to Know

  1. 1

    An Alabama claim of exemption is a written form, verified by oath, that you file with the court to protect some or all of your wages or bank funds from garnishment. It tells the court the money is exempt, meaning the law does not let a creditor take it.

  2. 2

    There is no fixed number of days, but timing still matters. Under Code of Ala. section 6-10-37 you must file your claim before the court enters a judgment of condemnation, the order that releases the held funds to the creditor, so file as soon as you learn of the garnishment.

  3. 3

    Alabama protects 75 percent of your pay. Under Code of Ala. section 6-10-7 at least 75 percent of your disposable earnings is exempt, and for consumer debt you keep the greater of that 75 percent or the amount by which your weekly earnings exceed 30 times the federal minimum wage.

  4. 4

    Some income is exempt no matter the debt. Social Security, disability, veterans benefits, and many pensions and public benefits are protected, and a claim of exemption is how you free those funds if a bank has frozen them.

  5. 5

    Money can be held while your claim is decided. Because each paycheck is subject to the garnishment until the court rules, filing your claim of exemption quickly limits what you lose.

  6. 6

    Alabama has a specific form. You file the Motion to Stop Wage Garnishment with the Declaration and Claim of Exemption for Wages, form PS-20, with the clerk of the court that issued the garnishment.

  7. 7

    Filing can lead to a hearing. If the creditor contests your claim, usually within about 10 days, the court schedules a hearing where you show the money is protected and the creditor must justify the garnishment.

Key decisions before you file

Before you file a Claim of Exemption in Alabama, a few decisions shape the document: which option to choose and what each one means. The Claim of Exemption guide walks through them.

Open the Claim of Exemption guide

Customize your Claim of Exemption Template with DocDraft

CLAIM OF EXEMPTION (ALABAMA - WAGE GARNISHMENT)

Filed under the Code of Alabama, Title 6, Chapter 10, including sections 6-10-7 and 6-10-37. The judgment debtor claims that some or all of the wages or funds being garnished are exempt from collection and asks the court to release them and to stop or reduce the garnishment before any judgment of condemnation is entered.

  1. COURT AND CASE Court that issued the garnishment: [COURT NAME] Case number: [CASE NUMBER] Garnishment or writ number: [GARNISHMENT NUMBER, IF ANY]

  2. PARTIES Judgment creditor: [CREDITOR NAME] Judgment debtor (you): [DEBTOR NAME] Debtor address: [DEBTOR ADDRESS] Employer or bank served with the garnishment: [EMPLOYER OR BANK NAME]

  3. EXEMPTION CLAIMED I claim that the money is exempt for the following reason(s): [ ] At least 75 percent of my disposable earnings is exempt under Code of Ala. section 6-10-7. [ ] The funds come from an exempt source: [SOCIAL SECURITY / DISABILITY / VETERANS BENEFITS / PENSION / OTHER]. [ ] Taking this money would leave me unable to pay for basic necessities. Amount I ask the court to protect: $[AMOUNT CLAIMED EXEMPT]

  4. SOURCE OF THE FUNDS Describe where the money comes from: [DESCRIPTION OF WAGES OR DEPOSITED FUNDS]

  5. FINANCIAL STATEMENT (attach if the court requires one) Monthly take-home pay: $[INCOME] Monthly necessary expenses: $[EXPENSES] Number of people I support: [NUMBER OF DEPENDENTS]

  6. REQUEST FOR HEARING I ask the court to protect the exempt money and, if the creditor contests this claim, to set a hearing before entering any judgment of condemnation.

  7. VERIFICATION I declare under penalty of perjury under the laws of the State of Alabama that the statements above are true and correct.

Debtor signature: [SIGNATURE] Printed name: [NAME] Date: [DATE]

Note: Alabama provides the Motion to Stop Wage Garnishment with the Declaration and Claim of Exemption for Wages (form PS-20), filed with the clerk of the court that issued the garnishment. You must claim your exemption before the court enters a judgment of condemnation, and there is no fixed number of days, so act quickly. Confirm the current form and procedure, or have this reviewed by an attorney, before you file.

Alabama Requirements for Claim of Exemption

Alabama Filing Deadline and Office

File the Alabama claim of exemption with the correct office, the court or the levying officer as Alabama directs, within the state's window after the garnishment is served. Money is usually held until the claim is decided, so filing late can forfeit wages the law would otherwise protect.

Frequently Asked Questions

An Alabama claim of exemption is a written form, verified by oath, that you file with the court to protect wages or bank funds from a garnishment. It tells the court that some or all of the money is exempt, meaning the law does not let a creditor take it. You file it with the clerk of the court that issued the garnishment before the court enters a judgment of condemnation on the held funds.

An objection challenges whether the garnishment itself is proper, such as a wrong amount, the wrong person, or a defective notice. An Alabama claim of exemption accepts that the debt exists but says the specific wages or funds are legally protected, for example the 75 percent of earnings the statute exempts. You can raise a defect and claim your exemption at the same time in one filing.

Alabama exempts 75 percent of your disposable earnings. Under Code of Ala. section 6-10-7 a creditor can reach at most 25 percent of your disposable earnings, and for consumer debt you keep the greater of 75 percent or the amount by which your weekly earnings exceed 30 times the federal minimum wage. Disposable earnings are what is left after legally required deductions.

Alabama does not set a fixed number of days. Under Code of Ala. section 6-10-37 you must file your written claim of exemption before the court enters a judgment of condemnation, which is the order that releases the held money to the creditor. Because that can happen quickly, file your claim as soon as you learn of the garnishment.

Social Security, Supplemental Security Income, veterans benefits, disability, and many pensions and public benefits are exempt from garnishment for ordinary debts, no matter how much you owe. Alabama also exempts 75 percent of ordinary wages. If exempt benefits are frozen in a bank account, a claim of exemption is how you get the bank to release them.

Alabama does not add a separate head-of-household wage exemption beyond the standard 75 percent of disposable earnings, and that 75 percent protection applies whether or not you support dependents. If the garnishment leaves you unable to cover basic necessities, raise that in your claim and explain your household income and expenses so the court can weigh it.

You file your Alabama claim of exemption with the clerk of the court that issued the garnishment. Alabama provides a specific form, the Motion to Stop Wage Garnishment with the Declaration and Claim of Exemption for Wages, form PS-20. The debtor also receives a Notice to Defendant of Right to Claim Exemption from Garnishment explaining the process.

After you file, the creditor has a chance to contest your claim, usually within about 10 days. If the creditor does not contest, your exemption stands and the protected money is released. If the creditor contests, the court schedules a hearing where you show the money is exempt and the creditor must justify the garnishment before a judgment of condemnation is entered.