Alabama Bankruptcy Exemptions

On this page you can find all of the exemptions for Alabama. Exemptions are the property that you can keep when you file bankruptcy.

CATEGORY
PROPERTY
AMOUNT
STATUTE
Homestead
Homestead of resident (includes mobile home)
$5000 (cannot exceed 160 acres)
Ala. Code § 6-10-2
Wild Card
Personal property of resident, except wages, salaries and compensation
$3,000
Ala. Code § 6-10-6
Wages / Wage Garnishment
Disposable earnings (earnings less deductions required by law and deductions as periodic payments to pension, retirement or disability programs)
75% or 30 times the federal minimum hourly wage per week, whichever is greater
Ala. Code § 5-19-15
Wages / Wage Garnishment
Wages, salaries and compensation for personal services
75%
Ala. Code § 6-10-7
Insurance
Crime Victims’ Compensation
100% (support claims excepted)
Ala. Code § 15-23-15(e)
Insurance
Proceeds and avails of disability insurance contracts & annuity contracts
$250 per month
Ala. Code § 27-14-31 & 32
Insurance
Proceeds and avails of life insurance policies payable to person other than the insured (includes cash surrender value, loan value and dividends)
100%
Ala. Code §§ 6-10-8, 27-14-29
Insurance
Insurance: Interest of resident members and policyholders of mutual aid associations
100%
Ala. Code § 27-30-25
Personal Property
Partner's interest in specific partnership property
100%
Ala. Code § 6-10-9,10A-8-2.03
Personal Property
Growing or ungathered crops
100%
Ala. Code § 6-9-41
Personal Property
Family portraits or pictures and all books used by family
100%
Ala. Code § 6-10-6
Personal Property
Necessary wearing apparel of resident debtor and family
100%
Ala. Code § 6-10-6
Personal Property
Burial lots and seat or pew in place of public worship
100%
Ala. Code § 6-10-5
Personal Property
Military: personally owned uniformed, arms, equipment, etc. retirement plans
100%
Ala. Code §31-2-78
Personal Property
Household goods and furnishings: Cooking utensils, stove, tableware, table, chairs, bed, bedding in use by family
100%
Ala. Code § 6-10-126
Pensions / Retirement Accounts
Retirement and disability benefits-Mudges
100%
Ala. Code § 12-18-10
Pensions / Retirement Accounts
Peace officers retirement and disability benefits
100%
Ala. Code § 36-21-77
Pensions / Retirement Accounts
State employees retirement system benefits
100%
Ala. Code § 36-27-28
Pensions / Retirement Accounts
Teachers' retirement system benefits
100%
Ala. Code § 16-25-23
Pensions / Retirement Accounts
Fraternal Benefit Society benefits
100%
Ala. Code § 27-34-27
Pensions / Retirement Accounts
Qualified trusts under Internal Revenue Code (spendthrift trust)
100%
Ala. Code § 19-3B-508
Tools of the Trade
Tools essential to debtor’s business
100%
Ala. Code § 6-10-126
Tools of the Trade
Vehicle essential to debtor’s business
100%
Ala. Code § 6-10-126
Public Benefits
Unemployment compensation benefits
100%
Ala. Code § 25-4-140
Public Benefits
Workmen's compensation benefits
100%
Ala. Code § 25-5-86
Public Benefits
Public assistance payments
100%
Ala. Code § 38-4-8, 38-5-5
Public Benefits
Southeast Asian War prisoners: security for loan or bonuses
$500
Ala. Code §§ 31-7-1, 31-7-2

If you want to learn more about filing bankruptcy in Alabama please visit our FAQ Page or for more information about Alabama you can visit the Alabama section.