When you file bankruptcy in Alabama, you may be required to use state-specific exemptions, as Alabama is an “opt-out” state. Below is a list of common exemptions, including homestead, personal property, and wages. Always confirm the latest amounts and guidelines with a qualified attorney.
| Asset | Exemption Description / Amount | Law Section | Notes |
|---|---|---|---|
| Homestead | Real property or mobile home up to $5,000 in value; limited to 160 acres. Married couples may double. | 6-10-2 | Must record homestead declaration before attempted sale (6-10-20). |
| Annuity Proceeds | Exempt up to $250/month | 27-14-32 | |
| Disability Proceeds | Exempt up to $250/month | 27-14-31 | |
| Fraternal Benefit Society Benefits | Fully exempt | 27-34-27 | |
| Life Insurance Proceeds | Exempt if beneficiary is insured’s spouse or child; or if policy prohibits proceeds from being used to pay beneficiary’s creditors. | 6-10-8, 27-14-29, 27-15-26 | |
| Mutual Aid Association Benefits | Fully exempt | 27-30-25 | |
| Property of Business Partnership | Exempt from partner’s individual creditors | 10-8-72 (b)(3) | |
| Judges’ Pensions (Payments Received) | Fully exempt | 12-18-10(a), (b) | |
| Law Enforcement Officers | Fully exempt | 36-21-77 | |
| State Employees | Fully exempt | 36-27-28 | |
| Teachers | Fully exempt | 16-25-33 | |
| Books / Clothing / Family Portraits | Exempt if needed | 6-10-6 | |
| Burial Plots / Church Pew | Fully exempt | 6-10-5 | |
| Aid to Blind, Aged, Disabled, AFDC | Fully exempt | 38-4-8 | |
| Coal Miner’s Pneumoconiosis Benefits | Fully exempt | 25-5-179 | |
| Crime Victim’s Compensation | Fully exempt | 15-23-15(e) | |
| Southeast Asian War POW Benefits | Fully exempt | 31-7-2 | |
| Unemployment Compensation | Fully exempt | 24-4-140 | |
| Workers’ Compensation | Fully exempt | 25-5-86(b) | |
| State Military Uniforms/Equipment | Arms, uniforms, equipment required to keep | 31-2-78 | |
| Wages | 75% of earned but unpaid wages exempt; judge may allow higher for low-income debtors. | 6-10-7 | |
| Wildcard | $3,000 of any personal property (except life insurance) | 6-10-6; In re Morris, 30 B.R. 392 (N.D. Ala. 1983) |
The information provided is for general informational purposes and may not reflect the most recent legal developments. These exemptions can change or be subject to interpretation by local courts. Always consult a licensed attorney for guidance specific to your situation.