Rev. 7/2017
Instructions for Determining the Percentage of Wages, Salary or Other Compensation to be Withheld
I. GARNISHMENTS TO COLLECT JUDGMENTS ARISING FROM SITUATIONS OTHER THAN CONSUMER LOANS, CONSUMER CREDIT SALES OR
CONSUMER LEASES ARE SUBJECT TO THE RESTRICTIONS OF:§6-10-7, Code of Alabama 1975, and Title 15, §1673, United States Code (“U.S.C.”).
Under Alabama and federal law, the amount subject to garnishment to collect such judgments shall not exceed the LESSER of:
(1) twenty-five (25) percent of “disposable earnings” for the week; OR
(2) the amount by which “disposable earnings” for the week exceed thirty (30) times the federal minimum hourly wage in effect at the time the earnings are
payable.
II. GARNISHMENTS TO COLLECT JUDGMENTS ARISING FROM CONSUMER LOANS, CONSUMER CREDIT SALES OR CONSUMER LEASES ARE SUBJECT
TO THE RESTRICTIONS OF: §5-19-15, Code of Alabama, 1975 as amended by Act 88-294, effective April 12, 1988, and Act 96-576, effective 5/20/1996.
A. Under this law, if the debt or demand was created ON OR AFTER April 12, 1988, the amount subject to garnishment shall not exceed the LESSER of:
(1) twenty-five (25) percent of “disposable earnings” for the week; OR
(2) the amount by which “disposable earnings” for the week exceed thirty (30) times the federal minimum hourly wage in effect at the time the earnings are
payable
B. If the debt or demand was created BEFORE April 12, 1988, the amount subject to garnishment shall not exceed the LESSER of:
(1) twenty (20) percent of “disposable earnings” for the week; OR
(2) the amount by which “disposable earnings” for the week exceed fifty (50) times the federal minimum hourly wage in effect at the time the earnings are
payable
DISPOSABLE EARNINGS 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.
NOTICE TO GARNISHEE
Note: If you have in your possession or control property or money belonging to the defendant (which is not wages, salary or other compensation and is not exempt
as a matter of law), you are commanded to hold the property or money, or the amount shown on the other side as “Total,” whichever is less, subject to the orders
of the Court. Social Security, SSI, VA and federal retirement moneys are all exempt under federal law and remain so even when deposited in a bank or other
financial institution. If the only money in your possession or control belonging to the defendant is Social Security, SSI, VA or federal retirement moneys, you should
indicate in your answer “all such money is exempt from execution.” The formula outlined below only applies if the property sought to be garnished is wages, salary
or other compensation of the defendant.
(Use the following formula to calculate a garnishment of wages, salary or other compensation)
(1) Calculate “disposable earnings” for the week (see definition of disposable earnings” above)
(2) If the twenty-five (25) percent block is checked on the front of this form, multiply the “disposable earnings” amount by twenty-five (25) percent. Then multiply the
“minimum wage amount” (in effect at the time the earnings are payable by you) by thirty (30) and subtract this amount from “disposable earnings.” Compare
these two and obtain lesser amount.
OR
(3) If the twenty (20) percent block is checked on the front of this form, multiply the “disposable earnings” amount by twenty (20) percent. Multiply the “minimum
wage amount” (in effect at the time the earnings are payable by you) by fifty (50) and subtract this amount from “disposable earnings.” Compare these two and
obtain lesser amount.
(4) After the calculation is made in accordance with (2) or (3) above (whichever is applicable), the amount of the garnishment for the week is the LESSER amount.
Withhold this amount and pay it into Court as instructed in the “Writ of Garnishment” on the front of this form.
(5) THE CLERK AND OTHER COURT PERSONNEL CANNOT GIVE YOU LEGAL ADVICE. IF YOU NEED ASSISTANCE YOU SHOULD CONSULT A LAWYER
FOR ADVICE.
PROTECTION AGAINST DISCHARGE: Title 15, §1674, U.S.C., prohibits an employer from discharging any employee because his or her earnings have been subjected to
garnishment for any one indebtedness.
NOTICE TO DEFENDANT OF RIGHT TO CLAIM EXEMPTION FROM GARNISHMENT
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. For example, under State law, in some circumstances, up to $7,500.00 in
personal property, including money (except wages, salaries, or other compensation), bank accounts, automobiles, appliances, etc. may be exempt from process 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 payments. SSI payments, veteran’s benefits, AFDC (welfare) payments, unemployment compensation payments,
and workers' compensation payments.
THESE EXAMPLES ARE FOR PURPOSES 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. 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. ALSO, IT IS YOUR
RESPONSIBILITY TO MAIL OR DELIVER A COPY OF THE CLAIM OF EXEMPTION TO THE PLAINTIFF WHO HAS A JUDGMENT AGAINST YOU. YOU MUST
INDICATE ON THE CLAIM OF EXEMPTION THAT YOU FILED 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 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 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 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
NOTICE TO PLAINTIFF OF RIGHT TO CONTEST CLAIM OF EXEMPTION OF DEFENDANT
If a “Claim of Exemption” is filed in the Clerk’s office and mailed or delivered to you by the defendant, you have approximately ten (10) days to file a “Contest” to the
Claim of Exemption with the Clerk of the Court.
If a Contest is timely filed, a Court hearing will be scheduled within seven (7) calendar days (or on the next business day thereafter if the Court is not open on the
seventh day). You and the defendant will be notified of the time and place of the hearing.
If you fail to make timely Contest of the Claim of Exemption, after fifteen (15) calendar days from the filing of such claim by the defendant, the Process of Garnishment
and any writ of garnishment issued therein shall be dismissed or, where appropriate, modified to the extent necessary to give effect to the claimed exemptions.
IF YOU ARE UNCERTAIN AS TO HOW TO FILE A CONTEST TO THE CLAIM OF EXEMPTION, YOU SHOULD CONSULT A LAWYER FOR ADVICE.
THE CLERK AND OTHER COURT PERSONNEL CANNOT GIVE YOU LEGAL ADVICE.
