Alabama Bankruptcy Exemptions

The chart below contains a summary of Alabama state bankruptcy exemptions and other relevant statutory laws. Click here for complete State of Alabama bankruptcy exemptions laws. Note: Federal bankruptcy exemptions are not available.

Personal exemptions allowed by Alabama Bankruptcy Laws

Note: Under the 2005 bankruptcy law, almost all types of tax-exempt retirement accounts are exempt in bankruptcy whether state or Federal exemptions are used. Exemptions for 401(k)s, 403(b)s, profit-sharing and money purchase plans, and defined benefit plans include the entire account amounts. However, with traditional and Roth IRAs, the exemption is limited to a total value of $1,171,650 per person for all accounts held by the debtor (not per account). The total value amount is adjusted every three years for inflation. The relevant statutes: 11 U.S.C. §522(d)(12) for Federal bankruptcy exemptions; 11 U.S.C. §522(b)(3)(C) for state bankruptcy exemptions.

ASSETEXEMPTIONLAW
Alabama HomesteadReal property or mobile home to $5000 (property cannot exceed 160 acres)6-10-2
Wages75% of weekly net earnings or 30 times the Federal minimum hourly wage (for consumer loans, consumer credit sales, and consumer leases); in all other cases, 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors5-19-15; 6-10-7
AutomobileNone; see Wildcard
Other propertyLife insurance proceeds or avails6-10-8; 27-14-29
Books of debtor and family6-10-6
Family portraits or pictures6-10-6
Clothing of debtor and family6-10-6
Burial place for self and family6-10-5
Arms, uniforms, equipment that state military personnel are required to keep31-2-78
Wildcard$3,000 of any personal property, except wages6-10-6

Note: While this reference information is current as of August 2010, it may not reflect the most up-to-date exemption figures on official state of Alabama bankruptcy court statutes.

Back to all State Bankruptcy Exemptions
Go to Complete State of Alabama bankruptcy exemptions laws.

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