Wage Garnishments

HOW TO STOP A WAGE GARNISHMENT IN ALABAMA

If you are facing a wage garnishment in Alabama, there are several steps you can take to stop the garnishment. In Alabama, when a creditor obtains a judgment against you and is able to determine who your employer is, they may take steps to garnish your wages. If you owe money from a payday loan, credit card, personal loan, or medical bill, and you do not pay, then they may eventually file a lawsuit in court, obtain a judgment, and garnish your wages. In Alabama the law allows creditors to garnish 25% of your net income. This is a substantial amount if you are living paycheck to paycheck and may affect your ability to provide for your necessities and your family’s needs.

What Are Your Options If a Creditor Has Served Your Employer with a Wage Garnishment Order?

1. File for Bankruptcy- You can stop the wage garnishment from proceeding by filing for bankruptcy in Alabama. Most people may see this as a last resort, but the truth is that it may be the better option for many people. When you file for bankruptcy, there is an automatic stay put in place. The automatic stay prevents the garnishment from continuing. Once the bankruptcy case is filed, the sheriff’s office will be informed of your filing, and they will issue a release to your employer that will prevent the garnishment from continuing. 2. Fight the Judgment- There are other options you can also seek to stop a wage garnishment, such as fighting the entry of a judgment. 3. Call the Creditor- There is nothing wrong with trying to work something out with the creditor. If the creditor is open to setting up a payment plan, then you can avoid having your wages garnished. Some creditors who are understanding may be willing to work with you. Many creditors are, for the most part, not open to discussing payment arrangements once they have a garnishment order that can collect on the money owed. If you are lucky, you may encounter a somewhat open creditor to set up a payment plan.

Wage Garnishment Frequently Asked Questions

The following frequently asked questions explain how wage garnishments work in Alabama and how bankruptcy may help stop collection efforts. Every case is unique, so consult an experienced bankruptcy attorney about your situation.

What is a wage garnishment?

A wage garnishment is a legal process that requires an employer to withhold part of an employee's earnings to pay a debt.

How does a creditor obtain a wage garnishment in Alabama?

For many consumer debts, a creditor generally must obtain a court judgment before seeking wage garnishment.

Can a credit card company garnish my wages?

Yes. A credit card company may seek wage garnishment after obtaining a valid court judgment.

Can medical bills lead to wage garnishment?

Yes. Unpaid medical bills may result in a lawsuit, judgment, and possible wage garnishment.

Can a payday lender garnish my wages?

A payday lender may seek garnishment after obtaining a judgment and following Alabama law.

Can a personal loan creditor garnish my wages?

Yes. A personal loan creditor may garnish wages after obtaining a valid judgment.

How much of my wages can be garnished?

The amount depends on federal and Alabama law, the type of debt, and your disposable earnings.

What are disposable earnings?

Disposable earnings are generally the portion of your wages remaining after legally required deductions.

Can filing bankruptcy stop a wage garnishment?

Yes. Filing Chapter 7 or Chapter 13 generally triggers an automatic stay that stops most wage garnishments.

How quickly does bankruptcy stop a garnishment?

The automatic stay generally becomes effective immediately upon filing, although notice must reach the appropriate parties.

What is the automatic stay?

The automatic stay is a federal court order that generally stops most collection activities after bankruptcy is filed.

Does the automatic stay stop every garnishment?

No. Certain obligations, such as some domestic support obligations, may continue despite bankruptcy.

Can bankruptcy stop child support garnishment?

Generally, bankruptcy does not stop current child support withholding.

Can bankruptcy stop an IRS wage levy?

Bankruptcy may temporarily stop many IRS collection actions, although exceptions apply.

Can bankruptcy stop student loan garnishment?

The automatic stay generally stops many student loan collection efforts while the bankruptcy case is pending.

Can Chapter 7 stop wage garnishment?

Yes. Chapter 7 generally stops most judgment creditor wage garnishments.

Can Chapter 13 stop wage garnishment?

Yes. Chapter 13 generally stops most wage garnishments while providing a repayment plan.

Will garnishment restart after Chapter 7?

A discharged debt generally cannot be garnished again, but non-dischargeable debts may resume collection.

Will garnishment restart after Chapter 13?

It depends on how the debt is treated and whether it is discharged.

Can I recover wages garnished before bankruptcy?

In some situations, recently garnished wages may be recoverable under bankruptcy law.

Can I challenge the judgment?

Yes. Some judgments may be challenged depending on the facts and applicable law.

Can I claim an exemption from garnishment?

Federal and Alabama law may protect certain earnings or property from garnishment.

Can I negotiate directly with the creditor?

Yes. Creditors sometimes agree to payment arrangements or settlements.

What should I do after receiving a garnishment notice?

Read the notice carefully, preserve all paperwork, and speak with an attorney promptly.

Can my employer fire me because of one wage garnishment?

Federal law provides protections against termination because of a single wage garnishment in many situations.

Will wage garnishment affect my credit?

The underlying debt, judgments, or bankruptcy may affect your credit history.

What documents should I bring to a consultation?

Bring garnishment papers, judgments, pay stubs, creditor notices, and your financial records.

Does Ferguson & Ferguson offer free wage garnishment consultations?

Yes. Ferguson & Ferguson offers free bankruptcy consultations through its Huntsville and Decatur offices.

Free Bankruptcy Consultation

If you have questions about a wage garnishment in Alabama, we can help. Call 256-534-3435 now. Huntsville Office Location: 303 Williams Avenue SW Suite 321 Huntsville, AL 35801 Decatur Office Location: 211 Oak Street NE Decatur, AL 35601