Alabama Bankruptcy Exemptions

Federal Bankruptcy laws determine the types of exemptions, but many states have constructed their own list of exemptions. In the state of Alabama, you must use the Alabama state exemption list. Alabama has exempted assets, property and wages to allow you to have enough assets to start over after bankruptcy.

If you are planning to file bankruptcy, consult with an Alabama Bankruptcy Attorney to determine what exemptions are allowed in the state of Alabama. Certain states may also have residency requirements to use the state exemption list. In certain states there may be certain supplemental federal exemptions if you use the state exemptions.

The Alabama exemptions are listed below. There may not be a matching exemption for all of your assets or personal property.

Exemptions Exemption Amount Statutes
Homestead Real property or mobile home to $5,000; property cannot exceed 160 acres (husband and wife may double) 6-10-2
  Must record homestead declaration before attempted sale of home 6-10-20
Insurance Annuity proceeds or avails to $250 per month 27-14-32
  Disability proceeds or avails to an average of $250 per month 27-14-31
  Fraternal benefit society benefits 27-34-27
  Life insurance proceeds or avails if beneficiary is insured’s spouse or child 6-10-8
  Life insurance proceeds or avails if beneficiary is wife of insured 27-14-29
  Life insurance proceeds or avails is clause prohibits proceeds from being used to pay beneficiary’s creditors 27-15-26
  Mutual aid association benefits 27-30-25

Personal Property

Books 6-10-6
  Burial Plots 6-10-5
  Church pew 6-10-5
  Clothing needed 6-10-6
  Family portraits or pictures 6-10-6
  Books 6-10-6
  Burial Plots 6-10-5
  Church pew 6-10-5
Pensions Judges (only payments being received) 12-18-10 (a), (b)
  Law enforcement officers 36-21-77
  State employees 36-27-28
  Teachers 16-25-33
Miscellaneous Property of business partnership 10-8-72 (b)(3)
Wages 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors 6-10-7
Wildcard $3,000 of any personal property, except life insurance (In re Morris, 30 B.R. 392 (N.D. Ala. 1983) 6-10-6
Tools of the Trade Arms, uniforms, equipment that state military personnel are required to keep 44-13-100(a)(7)
Public Benefits Aid to blind, aged, disabled, AFDC 38-4-8
  Coal miner’s pneumoconiosis benefits 25-5-179
  Crime victim’s compensation 15-23-15(e)
  Southeast Asian War POW’s benefits 31-7-2
  Unemployment compensation 24-4-140
  Workers’ compensation 25-5-86(b)
  Aid to blind, aged, disabled, AFDC 38-4-8
  Coal miner’s pneumoconiosis benefits 25-5-179
  Crime victim’s compensation 15-23-15(e)

There are certain debts such as deeds of trust, taxes. And mortgages which will not be discharged by filing bankruptcy. Failure to pay these debts will allow the lender the right to pursue legal debt collection efforts.

For more information call us at 866-210-1722 or fill out the form below.
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