Alabama, AL Bankruptcy Exemptions

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The Essential Alabama Bankruptcy Information Guide

Alabama, AL Bankruptcy Exemptions

FEDERAL BANKRUPTCY EXEMPTIONS ARE NOT AVAILABLE
All law references are to Alabama Bankruptcy Code.

All property of the debtor at the time of the filing for bankruptcy (and certain other property to be received in the future) becomes the property of the bankruptcy estate once bankruptcy is filed. This means that the bankruptcy trustee will take control of this property for purposes of satisfying the creditors. HOWEVER, there is certain property which is either excluded or exempt which the debtor will be able to keep. Property or asset exemption are determined based upon your specific situation, personal income and the individual laws of your state.

The best way to determine which property you will be entitled to keep requires a detailed analysis of your unique and personal situation. Although the following Federal and State Bankruptcy Asset Exemption is provided for your information, we highly recommend Finding a Good Bankruptcy Attorney to help guide you through the Bankruptcy Process.

ASSET	EXEMPTION DESCRIPTION	LAW SECTION
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
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
	Tax exempt retirement accounts.	11 U.S.C. §522(b)(3)(C)
	Traditional and Roth IRAs up to $1,095,000 per person.	11 U.S.C. §522(b)(3)(C)(n)
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
PUBLIC BENEFITS	Aid to blind, aged, disabled, AFDC	38-4-8
	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)
TOOLS OF TRADE	Arms, uniforms, equipment that state military personnel are required to keep	31-2-78
WAGES	75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors	6-10-7

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