SB504 Alabama 2011 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Co-Sponsors

Paul SanfordPaul Bussman

Session

Regular Session 2011

Title

Garnishments, garnishee authorized to retain portion of funds withheld from wages as a processing fee, Sec. 6-10-7 am'd.

Summary

This bill would allow a garnishee to deduct a processing fee of up to $5 from funds withheld under garnishment in Alabama.

What This Bill Does

It amends the garnishment law to let the garnishee keep up to five dollars per withholding as a processing fee. The existing rules stay in place for how much wages are exempt (75%), how much is retained to pay the debt (25%), and when funds are paid to the court. The garnishee must begin sending withheld funds to the court after 30 days and continue until the full amount is withheld, with the court able to disburse funds to the plaintiff if requested. If the defendant’s employment ends, the garnishee must report the termination and pay sums withheld within 15 days.

Who It Affects

• Garnishors (employers, banks, or other entities that withhold wages) who can now deduct a $5 processing fee per withholding.
• Creditors/plaintiffs who receive garnished funds and may receive less money because the processing fee comes out of the withheld funds.

Key Provisions

• Authorizes the garnishee to retain up to five dollars ($5) from each withholding as a processing fee.
• Maintains the exemption rule: 75% of wages are exempt from levy and the garnishee retains 25% to accumulate the amount due.
• Requires the garnishee to commence paying withheld funds into court after 30 days from the first retention and continue until the full amount is withheld; court may condemn funds upon request.
• If the plaintiff contests the garnishee's answer and proves deficiency or untruth, the court may judgment against the garnishee for the amount that would have been condemned.
• If the defendant’s employment ends, the garnishee must report the termination and pay sums withheld within 15 days.
• Effective date: becomes law on the first day of the third month after passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Garnishments