Alabama Bankruptcy Exemptions 2022
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Written by Upsolve Team.
Reviewed September 29, 2021
It's important to understand what the exemptions for Alabama are and how they're most often used in a bankruptcy case.
How Do Exemptions Work?
When you file for Chapter 7 bankruptcy, one of the biggest questions is whether or not you will be able to keep your property.
That depends on which property exemptions you can use on your bankruptcy forms. They are called exemptions because they “exempt” -- or “excuse” -- certain property from being taken. In most cases, exemptions protect most day-to-day items that you own, unless you have expensive property like a house or a car.
Certain exemptions protect entire categories of property like retirements accounts, regardless of value. Other exemptions only protect specific property like a vehicle up to a certain value.
If you're looking for a deep understanding of bankruptcy exemptions, read this article.
Does Alabama allow federal exemptions?
Alabama does not recognize the federal exemptions.
Every state has its own set of property exemptions. And some states also allow you choose between their exemptions and a set of federal bankruptcy exemptions. When they do, they will generally let you to choose the system that is the best fit for you. Although some states allow you to use the federal bankruptcy exemptions, others do not.
Alabama Exemptions
Ala. Code § 12-18-10
Most people use Ala. Code § 12-18-10 to cover private pension plans (judges). For single debtors filing, it has no coverage limit.
Ala. Code § 15-23-15 (e)
Most people use Ala. Code § 15-23-15 (e) to cover crime victims' compensation - $400 per week. For single debtors filing, it has a coverage limit of $15,000.
Ala. Code § 16-25-23
Most people use Ala. Code § 16-25-23 to cover private pension plans (teachers). For single debtors filing, it has no coverage limit.
Ala. Code § 19-3B-501; Ala. Code § 19-3B-502; Ala. Code § 19-3B-503
Most people use Ala. Code § 19-3B-501; Ala. Code § 19-3B-502; Ala. Code § 19-3B-503 to cover spendthrift trust. For single debtors filing, it has no coverage limit.
Ala. Code § 19-3B-508
Most people use Ala. Code § 19-3B-508 to cover ira & roth ira. For single debtors filing, it has no coverage limit.
Ala. Code § 25-4-140
Most people use Ala. Code § 25-4-140 to cover unemployment compensation. For single debtors filing, it has no coverage limit.
Ala. Code § 25-5-86
Most people use Ala. Code § 25-5-86 to cover worker's compensation. For single debtors filing, it has no coverage limit.
Ala. Code § 27-14-31
Most people use Ala. Code § 27-14-31 to cover disability insurance proceeds - avarage $250 per month. For single debtors filing, it has a coverage limit of $250.
Ala. Code § 27-14-32
Most people use Ala. Code § 27-14-32 to cover annuities - to $250 per month. For single debtors filing, it has a coverage limit of $250.
Ala. Code § 31-2-78; Ala. Code § 6-10-126 (a)(4)
Most people use Ala. Code § 31-2-78; Ala. Code § 6-10-126 (a)(4) to cover tools of trade. For single debtors filing, it has no coverage limit.
Ala. Code § 31-2-78; Ala. Code § 6-10-126 (a)(4)
Most people use Ala. Code § 31-2-78; Ala. Code § 6-10-126 (a)(4) to cover state military arms, uniforms, equipment. For single debtors filing, it has no coverage limit.
Ala. Code § 36-21-77
Most people use Ala. Code § 36-21-77 to cover private pension plans (police officers). For single debtors filing, it has no coverage limit.
Ala. Code § 36-27-28
Most people use Ala. Code § 36-27-28 to cover private pension plans (state employees). For single debtors filing, it has no coverage limit.
Ala. Code § 38-4-8; Ala. Code § 38-5-5
Most people use Ala. Code § 38-4-8; Ala. Code § 38-5-5 to cover earned income tax credit. For single debtors filing, it has no coverage limit.
Ala. Code § 5-19-15; Ala. Code § 6-10-7
Most people use Ala. Code § 5-19-15; Ala. Code § 6-10-7 to cover unpaid wages - 75% of weekly net earnings. For single debtors filing, it has no coverage limit.
Ala. Code § 6-10-126 (a)(3)
Most people use Ala. Code § 6-10-126 (a)(3) to cover vehicle used by and essential to the debtor's business. For single debtors filing, it has no coverage limit.
Ala. Code § 6-10-6
Most people use Ala. Code § 6-10-6 to cover books, antiques, art, collectibles. wearing apparel. For single debtors filing, it has no coverage limit.
Ala. Code § 6-10-8; Ala. Code § 27-14-29
Most people use Ala. Code § 6-10-8; Ala. Code § 27-14-29 to cover life insurance (proceeds and 100% of cash value). For single debtors filing, it has no coverage limit.
Ala. Code § 6-10-8; Ala. Code § 27-34-27; Ala. Code § 27-14-29
Most people use Ala. Code § 6-10-8; Ala. Code § 27-34-27; Ala. Code § 27-14-29 to cover fraternal benefits, societal benefits. For single debtors filing, it has no coverage limit.
Ala. Code § 6-10-9; Ala. Code § 10-8A-501
Most people use Ala. Code § 6-10-9; Ala. Code § 10-8A-501 to cover partnership property. For single debtors filing, it has no coverage limit.
Ala. Code § 6-9-41
Most people use Ala. Code § 6-9-41 to cover crops: growing or ungathered. For single debtors filing, it has no coverage limit.
Ala. Code § 6-10-6; Ala. Code § 6-10-126
Most people use Ala. Code § 6-10-6; Ala. Code § 6-10-126 to cover household goods and furnishings. For single debtors filing, it has no coverage limit.
11 U.S.C. § 522(b)(3)(C)
Most people use 11 U.S.C. § 522(b)(3)(C) to cover tax exempt retirement accounts. For single debtors filing, it has no coverage limit.
5 U.S.C. §§ 8437(e)(g), 11 U.S.C. § 541(c)(2)
Most people use 5 U.S.C. §§ 8437(e)(g), 11 U.S.C. § 541(c)(2) to cover thrift savings plan. For single debtors filing, it has no coverage limit.
Ala. Code § 6-10-6; Ala. Code § 6-10-126
Most people use Ala. Code § 6-10-6; Ala. Code § 6-10-126 to cover wildcard. For single debtors filing, it has a coverage limit of $7,500.
