Alabama Bankruptcy Exemptions

The Alabama bankruptcy exemptions, details the possessions that anybody can exempt or defend from creditors when they are filling bankruptcy in Alabama. They may exempt any goods that fall into one of the exemptions categories listed beneath and up to the value listed.

Any person can keep these exempted properties after they file bankruptcy. Please note that there are several debts which they will not be able to wipe away in bankruptcy.

An exemption limit is affecting any equity you have. Equity is the difference between the cost of the asset and what is owed on that particular good. For example, a house that is valued at $90 000 usd with a loan of $55.000 usd has an equity value of only 35.000 usd.

If the possessions are secured by a loan(for example a car or home) and you are on time with the payments, the equity is enclosed by your exemptions, and if you chose to keep pay on the loan you normally can keep this assets through the bankruptcy.

If all the equity is not covered by your exemptions the trustee may choose to clear up this goods and distribute the possessions.

Also, the bankruptcy law permits married couples that fill for bankruptcy to each claim a full set of exemptions, except otherwise noted.

When you are applying for bankruptcy in Alabama you might also use several federal exemptions in addition to your Alabama exemptions.

Asset: homestead
- Real property or mobile home to $5,000; property cannot exceed 160 acres (husband and wife may double).The law section is 6-10-2.
- Must record homestead declaration before attempted sale of home. The law section :6-10-20

Asset: Insurance
- Annuity proceeds or avails to $250 per month .The law section is 27-14-32
- Disability proceeds or avails to an average of $250 per month.The law section is 27-14-31
- Fraternal benefit society benefits.The law section is 27-34-27
- Life insurance proceeds or avails if beneficiary is insured’s spouse or child. The law section is 6-10-8.
- Life insurance proceeds or avails if beneficiary is wife of insured.The law section is 27-14-29
- Life insurance proceeds or avails is clause prohibits proceeds from being used to pay beneficiary’s creditors.The law section is 27-15-26
- Mutual aid association benefits. The law section is 27-30-25

Asset: Pensions
- Judges (only payments being received).The law section is 12-18-10 (a), (b)
- Law enforcement officers.The law section is 36-21-77
- State employees .The law section is 36-27-28
- Teachers. The law section is 16-25-33

Asset: Personal Property
- Books.The law section is 6-10-6
- Burial Plots.The law section is 6-10-5
- Church pew. The law section is 6-10-5
- Clothing needed .The law section is 6-10-6
- Family portraits or pictures.The law section is 6-10-6

Asset: Public Benefits
- Aid to blind, aged, disabled, AFDC .The law section is 38-4-8
- Coal miner’s pneumoconiosis benefits .The law section is 25-5-179
- Crime victim’s compensation. The law section is 15-23-15(e)
- Southeast Asian War POW’s benefits .The law section is 31-7-2
- Unemployment compensation .The law section is 24-4-140
- Workers’ compensation .he law section is 25-5-86(b)

Asset: Tools of trade
- Arms, uniforms, equipment that state military personnel are required to keep.The law section is 31-2-78

Asset: Wages:
- 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors. The law section is 6-10-7

Asset: Wild Card
- 3,000 usd of any personal property, except life insurance (In re Morris, 30 B.R. 392 (N.D. Ala. 1983). The law section is 6-10-6