Alabama law protects all or a portion of your property from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so it’s wise to consult with an Alabama bankruptcy attorney to find which of your assets will be protected in a bankruptcy filed in Alabama. In general, the major Alabama bankruptcy exemptions include:
|GENERAL EXEMPTIONS IN ALABAMA|
|Real Estate (the Homestead Exemption)
Up to $5,000 in the equity of your home can be protected (a mobile home or similar dwelling constitutes a homestead if it is your principal residence).
There is no specific automobile exemption in Alabama.
Personal property valuing up to $3,000 can be exempted.
|View the complete list of Alabama bankruptcy exemptions.|
Please remember that this page provides general information only, and is not intended to provide legal advice. The information is not a substitute for the advice of a qualified bankruptcy attorney. If you need legal assistance, consult an attorney.
Generally, the laws of the state in which you lived for the 730 days (2 years) prior to filing a bankruptcy petition will apply in your bankruptcy.
If you have not lived in the same state for the 2 years immediately prior to filing your bankruptcy petition, the laws of the state in which you lived for the majority of the 180-day period preceding the 2-year period will likely apply.
If application of the preceding general rules renders you ineligible for exemptions under any state’s laws, you may be allowed to choose the federal exemptions applicable in your bankruptcy.
No, Alabama is not a community property state. Because it is not a community property state, you will be responsible for your spouse’s debts only if you voluntarily assumed those debts by, for example, co-signing on a loan given to your spouse. In a non-community property state, one spouse can file for bankruptcy and be eligible to eliminate all of their unsecured debts without the involvement of the other spouse.
Following years of intense lobbying by creditors, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Did your Senators vote for these largely pro-creditor provisions?
Sessions (R-AL) — YEA
Shelby (R-AL) — YEA
Frank M. Johnson United States Courthouse Complex
One Church Street
Montgomery, Alabama 36104
George W. Andrews Federal Building
701 Avenue A
Opelika, Alabama 36801
Federal Building and United States Courthouse
100 W. Troy Street
Dothan, AL 36303
U.S. Bankruptcy Court
Southern District of Alabama
201 St. Louis Street
Mobile, AL 36602
1118 Greensboro Ave.
Tuscaloosa, AL 35401
1800 5th Avenue North
Birmingham, AL 35203
103 Federal Courthouse
12th & Noble Streets
Anniston, AL 36201
P.O. Box 2748
Decatur, AL 35602
Note: You may not have to actually go to one of the above bankruptcy courts. Trustees often conduct your meeting at a local venue.
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Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed. A local bankruptcy attorney will be familiar with the specific rules in your area.