January 15, 2020

AILA Members and Friends:

The long awaited decision in the case challenging the Constitutionality of the 2015 Garnishment Law has now been handed down by an appellate court in Alabama. Regrettably, the Alabama Court of Civil Appeals determined that the “new” Garnishment law, excluding “wages, salaries or other compensation” from being within the meaning of “personal property” is unconstitutional. The case, released January 10, 2020, is attached for those who want to study the decision.

Unfortunately, this decision returns the state of the law to that existing immediately prior to the passage of Section 6-10-6.1 – that is, each and every paycheck of an amount equal to or less than $1000 may be claimed as exempt personal property by a judgment debtor to effectively avoid garnishment in Alabama.

This decision, if not reconsidered or appealed, and reversed, impairs the effectiveness of a significantly important tool in a creditor’s ability to collect its just debts.


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