National Divorce & Bankruptcy Center
Alabama Bankruptcy Property Exemptions:
What You Can Keep
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EXEMPT PROPERTY: The property you can keep after
bankruptcy.
Some property in many states is exempt regardless of
its value i.e. "all personal possessions". Many states also have a 'wild card'
exemption which can be applied to any type of property or split among several
different items.
An exemption limit means that any equity above the limit is
'non-exempt'. Equity is the difference between the value of the property
and what is owed on the property. For example, a car valued at $4000 with a lien
of $3500 has an equity value of only $500 subject to exemption.
To keep non-exempt property, a debtor must generally pay the trustee the
value of the non exempt property to be distributed to creditors.
Bankruptcy law allows married couples filing jointly to each claim a full set
of exemptions doubling the exemptions. Unless otherwise noted in the following
exemption list, married couples may double the exemption amount given.
For exmeption purposes, property value has benn generally accepted to be
Garage Sale Value.
Federal exemptions are not available in Al.
Homestead Real Property or mobile home to $5,000; property cannot
exceed 160 acres or 320 acres for a husband and wife.
Insurance:
- Annuity proceeds or avails to $250 per month
- Disability proceeds or avails to an average of $250 per month
- Fraternal benefit society benefits
- Life insurance proceeds or avails if beneficiary is insured's spouse or
child
- Life insurance proceeds or avails if beneficiary is wife of insured
- Life insurance proceeds or avails if clause prohibits proceeds from being
used to pay beneficiary's creditors
- Mutual aid association benefits.
Miscellaneous
- Property of business partnership
Pensions
- Judges only payments being received
- Law enforcement officers
- State employees
- Teachers
Personal Property
- Books
- Burial Place
- Church pew
- Family portraits or pictures
Public Benefits
- Aid to blind, aged, disabled, AFDC (Aid to Families with Dependant
Children)
- Coal miners' pneumoconiosis benefits
- Crime victims' compensation
- Southeast Asian War POW's benefits
- Unemployment compensation
- Worker's Compensation
Tools of the Trade
- Arms, uniforms, equipment that state military personnel are required to
keep
Wages
- 75% of earned but unpaid wages; bankruptcy judge may authorize more for
low income debtors
Wild Card