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.