Is workers compensation a garnishment exemption in Alaska? What is the Alaska Exemptions Act?

Wage garnishment occurs when an employer is required to withhold the earnings of an individual for the payment of a debt.  Wage garnishment must be the result of a court or some other legal procedure.

Alaska wage garnishment laws and the Alaska Exemptions Act sets certain exemptions limiting a creditor’s ability to garnish certain income of the debtor.  The Act allows only 25% of disposable income (income after required deductions are made) to be subject to garnishment.  75% or $402 whichever is more will remain exempt from garnishment.

Under the category of “Public Assistance/Entitlements” the exemptions are for Unemployment benefits, Worker’s Compensation, AFDC, aid to the elderly, disabled, blind, longevity bonus, and crime victim’s benefits.  These exemptions are for an unlimited amount.  In other words no matter how much you receive in Worker’s Compensation, it will be exempt from garnishment. 

Alaska, like other states, exempts workers compensation from garnishment.  If you have questions about other exemptions or the amounts of other income which are subject to garnishment, please contact a debt settlement attorney for assistance.