State Debt Laws
Alabama Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Alabama
Alabama (AL) - At a Glance
| State Consumer Protection Law | Alabama Deceptive Trade Practices Act (ADTPA) |
| Source | Ala. Code ยง 8-19-1 et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 25% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $1,000 in cash/deposits |
| Homestead Exemption | $15,000 ($30,000 if 65+) |
Key Protections in Alabama
- FDCPA applies to third-party collectors
- ADTPA covers unfair business practices
- Wage garnishment allowed after judgment
- Can garnish 25% of disposable earnings
Wage Garnishment in Alabama
After a court judgment, creditors in Alabama can garnish up to 25% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Alabama follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Alabama
If a debt collector violates the FDCPA or Alabama Deceptive Trade Practices Act (ADTPA):
- File with the Alabama Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)