Exemptions determine what property you are allowed to keep when you file a Chapter 7 bankruptcy, and how much you pay to certain creditors in a Chapter 13 bankruptcy.The assets that you are allowed to keep in bankruptcy is determined by the state where you live. In general, if you are a resident of Alabama before filing you will use Alabama bankruptcy exemptions. If married and filing jointly, each spouse can claim the exemptions. Therefore, the exemptions are doubled. Below is an explanation of a few of the major protections under the Alabama exemptions.
Alabama Bankruptcy Exemptions – Section 6-10-2 through 6-10-6 protection
- Homestead allows to protect $15,500 in equity in your home for a single person, $31,000 for families. Property can’t exceed 160 acres.
- Wildcard – Up to $7,750 in any property you own. This includes jewelry, cars, clothing, books, family portraits, pictures, household furnishings, and appliances that are reasonably necessary.
Free Bankruptcy Consultations
If you have questions about exemptions in the State of Alabama, call Ferguson and Ferguson now for your free consultation. Call 256-534-3435 or 256-350-7200 now. We understand exemptions and are here to help you through this difficult time.