Alabama Bankruptcy Exemptions

This list of exemptions updated December 2009. All law references are to Code of Alabama unless otherwise noted. Federal bankruptcy exemptions are not allowed in Alabama.

Homestead

6-10-2 - Real property or mobile home, up to $5,000. Property can't exceed 160 acres.

6-10-20 - Before an attempt to sell the home, a homestead declaration must be recorded.

Personal Property

6-10-5 - A burial place and a church pew or seat.

6-10-6 - Clothing, books, family portraits and pictures, and $3,000 of any other personal property (except wages).

Wages

5-19-15; 6-10-7 - 75% of earned but unpaid wages. Judge may approve more for low-income debtors. 75% of weekly net income or 30 times the federal minimum hourly wage in regards to consumer leases, consumer credit sales, or consumer loans.

Pensions

11 U.S.C. §522(b)(3)(C) - Tax exempt retirement accounts.

11 U.S.C. §522(b)(3)(C)(n) - Traditional and Roth IRAs up to $1,095,000 per person.

12-18-10 - Judges (for payments being received only).

16-25-23 - Teachers.

19-3B-501 to 503 - With certain exceptions, spendthrift trusts.

36-21-77 - Law enforcement officers.

36-27-28 - State employees.

Public Benefits

15-23-15 - Crime victims' compensation.

25-4-140 - Unemployment compensation.

25-5-86 - Workers' compensation:

31-7-2 - Southeast Asian War POW's benefits.

38-4-8 - Aid to blind, aged, and disabled; other public assistance.

Tools of Trade

31-2-78 - Arms, uniforms, and equipment required to be kept by state military personnel.

Insurance

6-10-8 & 27-14-29 - Life insurance proceeds.

27-14-31 - Disability proceeds up to an average of $250 per month.

27-14-32 - Annuities up to $250 per month.

27-15-26 - Life insurance, if policy prohibits use to pay creditors.

27-30-25 - Mutual aid association benefits.

27-34-27 - Fraternal benefit society benefits.

Other - Add any applicable Federal Nonbankruptcy Exemptions

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