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.
|Alabama Homestead||Real property or mobile home to $5000 (property cannot exceed 160 acres)||6-10-2|
|Wages||75% 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 debtors||5-19-15; 6-10-7|
|Automobile||None; see Wildcard|
|Other property||Life insurance proceeds or avails||6-10-8; 27-14-29|
|Books of debtor and family||6-10-6|
|Family portraits or pictures||6-10-6|
|Clothing of debtor and family||6-10-6|
|Burial place for self and family||6-10-5|
|Arms, uniforms, equipment that state military personnel are required to keep||31-2-78|
|Wildcard||$3,000 of any personal property, except wages||6-10-6|
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.
Alabama Bankruptcy Court links :
- United States Bankruptcy Court – Northern District of Alabama – Birmingham (ALNB)
- United States Bankruptcy Court – Northern District of Alabama – Decatur (ALNB)
- United States Bankruptcy Court – Middle District of Alabama (ALMB)
- United States Bankruptcy Court – Southern District of Alabama (ALSB)