| Alabama Bankruptcy Exemptions |
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| Assets |
Exemption |
State Statute |
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| Homestead |
Real property or a mobile home: up to $5,000 for property that
is 160 acres or less. |
6-10-2 |
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The debtor must record a homestead declaration before the sale
of the property to claim a homestead exemption. |
6-10-20 |
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| Insurance |
Life insurance policy /avails: all. |
6-10-8; 27-14-29 |
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Disability insurance proceeds/avails: up to $250 per month. |
27-14-31 |
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Annuity proceeds/avails: up to $250 per month. |
27-14-32 |
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Life insurance policy proceeds/avails: all if there is a
clause prohibiting proceeds from being used to pay the creditors of the
beneficiary. |
27-15-26 |
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Benefits from a mutual aid association: all. |
27-30-25 |
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Benefits from a fraternal society: all. |
27-34-27 |
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| Pensions |
Federal pension exemptions. |
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Judge pensions: all. |
12-18-10(a), (b) |
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Teacher pensions: all. |
16-25-23 |
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IRA and other retirement accounts: all. |
19-3-1 |
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Law enforcement officer pensions: all. |
36-21-77 |
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State employee pensions: all. |
36-27-28 |
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| Personal Property |
Place of burial: all for the debtor and his/her family. |
6-10-5 |
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Church pew: all used by the debtor and his/her family. |
6-10-5 |
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Books: all owned by the debtor and his/her family. |
6-10-6 |
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Clothing: all owned by the debtor and his/her family. |
6-10-6 |
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Family portraits or pictures: all. |
6-10-6 |
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| Public Benefits |
Crime victims’ compensation benefits: all. |
15-23-15(e) |
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Unemployment compensation benefits: all. |
25-4-140 |
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Workers’ compensation benefits: all. |
25-5-86(b) |
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Benefits for POWs of Southeast Asian War: all. |
31-7-2 |
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Public assistance, including aid to the blind, aged, and
disabled: all. |
38-4-8 |
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| Tools of Your Trade |
For state military personnel: all the equipment they must
keep, including arms, uniforms, and equipment. |
31-2-78 |
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| Wages |
Wages: up to 75% of net earnings per week or 30 times the
federal hourly minimum wage whichever is greater, if the debt is a consumer
loan, consumer credit sale, or consumer lease |
5-19-15 |
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Wages: up to 75% of wages that have been earned but are as yet
unpaid for any other debt. The bankruptcy judge can allow a larger exemption
for a low-income debtor. |
6-10-7 |
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| Wildcard |
Any
personal property, except wages or homestead: up to $3,000. |
6-10-6 |
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