Mutual Aid Associations and Alabama Bankruptcy Exemptions
A person filing for bankruptcy protection in Alabama may be permitted to use the state’s bankruptcy exemptions to protect some of their property and assets. In particular, they may use their membership in a mutual aid society or association without losing those funds to bankruptcy. These funds can help an individual keep their budget balanced, as they can provide some much needed income.
If you are going through a period of financial distress and would like to learn more about the potential relief that might be available through bankruptcy, we can help. Contact the Birmingham bankruptcy attorneys of GREENWAY BANKRUPTCY LAW, LLC, by calling (205) 324-4000 for a free consultation regarding your bankruptcy options.
Mutual Aid Societies
According to the Alabama bankruptcy code, mutual aid society benefits are exempt from bankruptcy. Many people may belong to mutual aid associations and can use this exemption to their benefit turning their times of financial turmoil. Some of the following groups may be considered mutual aid associations:
- Trade or credit unions
- Hometown associations for immigrants
- Fraternal societies
- Help organizations
These groups are meant to help a person work through difficult times and help others when they are financially successful. As the benefits from these groups can significantly help a debtor to help themselves, the financial benefits associated with these societies are not subject to bankruptcy proceedings.
If you have been trying to manage a massive debt burden and simply cannot handle it any longer, we may be able to help you with your bankruptcy proceedings. To learn more about exemptions and your bankruptcy options, contact the Birmingham bankruptcy lawyers of GREENWAY BANKRUPTCY LAW, LLC, at (205) 324-4000 today.