On June 11, 2015, Governor Robert Bentley signed into law (Act No. 2015-484) increasing Alabama’s bankruptcy exemptions for the first time since 1982. Effective June 11, 2015 (same day as signing) debtors are entitled to the following:
- Personal property exemption of $7,500 (§6-10-6; §43-8-111)
- Homestead exemption of $15,000 (double, if married) (§6-10-2; §43-8-110)
Personal property exemption protects items such as household goods, books, pictures, clothing, jewelry, tools, lawn equipment, and equity in a car. The homestead exemption applies to the family home or mobile home in which the debtor actually resides in. The amounts listed above will be automatically adjusted every 3 years beginning July 1, 2017 to reflect the change in the consumer price index.
If you have any questions regarding Alabama bankruptcy exemptions, please let us know and we will be happy to address your questions. Please either use the contact form on this page or give us a call at 334-737-6311.