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Alabama Bankruptcy Exemptions

Federal Supplemental Exemptions can be used in conjunction with your Alabama exemptions and can be viewed here.

In Alabama, you may choose to use the Federal Exemption set instead of your state exemptions.

You may also want to visit your local federal bankruptcy court web site:

Also see Alabama bankruptcy forms.

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

MISC.

Property of business partnership

10-8-72 (b)(3)

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

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

 

Coal miner’s pneumoconiosis benefits

25-5-179

 

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

WILD CARD

$3,000 of any personal property, except life insurance (In re Morris, 30 B.R. 392 (N.D. Ala. 1983)

6-10-6