Alaska Wage Garnishment Limits: How Much Can Be Garnished
You cannot take everything from a debtor's paycheck. Both federal law and Alaska state law cap how much an employer can withhold, and whichever formula protects the debtor more is the one that controls. Understanding these limits before you file for garnishment prevents surprises when the employer's first payment is smaller than you expected.
The Federal Ceiling (CCPA)
Under the Consumer Credit Protection Act (15 U.S.C. § 1673), the garnishable amount per pay period is the lesser of:
- 25% of disposable earnings, or
- The amount by which disposable earnings exceed 30 times the federal minimum wage ($7.25/hour x 30 = $217.50 per week)
"Disposable earnings" means gross pay minus mandatory deductions required by law — federal income tax, FICA, Medicare, and any state taxes. Voluntary deductions like health insurance premiums, 401(k) contributions, and union dues do not reduce disposable earnings for garnishment purposes.
The Alaska Floor (AS 09.38.030)
Alaska adds its own protective threshold under AS 09.38.030 and 8 AAC 95.030. The state floor is adjusted periodically based on the Anchorage CPI. When the Alaska exemption amount protects more than the federal calculation, the state limit controls.
The practical effect: low-wage earners are protected more than the federal formula alone would allow, while higher earners typically hit the 25% federal cap.
Worked Example
For a debtor earning $800 per week in disposable income:
| Calculation | Amount |
|---|---|
| Gross weekly pay | $1,000 |
| Mandatory deductions (tax, FICA, Medicare) | -$200 |
| Disposable earnings | $800 |
| 25% of disposable | $200 |
| Disposable minus $217.50 | $582.50 |
| Garnishable amount (lesser of the two) | $200 |
The employer withholds $200 and sends it to the court. The debtor keeps $600. If disposable earnings were only $250 per week, the garnishable amount would be just $32.50 ($250 - $217.50), because that is less than 25% of $250 ($62.50).
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Head-of-Household Considerations
Alaska's exemption framework provides additional protection when a debtor's earnings alone support their household. A debtor claiming this increased exemption must file Form CIV-531 (Claim of Exemption from Garnishment) and swear or affirm under penalty of perjury that their earnings alone support their household.
As the creditor, you can challenge the claim with Form CIV-516 if you have reason to believe the debtor is overstating their household obligations.
What Employers Must Do
Once served with Form CIV-525 (Writ of Execution for Garnishment of Earnings) and CIV-526 (Employer's Response), the employer must:
- Calculate disposable earnings each pay period using the dual federal/state formula
- Withhold the garnishable amount
- Complete Form CIV-526 reporting the calculation
- Remit withheld funds to the court or executing officer
The garnishment writ stays active for 60 days. If the employer does not return the required response, you can ask the court to order the employer to appear and explain the refusal.
Multiple Garnishments
If another creditor already has an active garnishment against the same debtor, the 25% cap is shared, not stacked. Federal law limits total garnishment to 25% of disposable earnings across all creditors. Your garnishment gets in line behind any existing ones. The employer's response form will indicate if other garnishments are active.
The Alaska Judgment Collection Guide includes the complete wage calculation worksheet and step-by-step garnishment instructions.
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