Top 5 Alabama State Bankruptcy Exemptions
As you face Chapter 7 bankruptcy proceedings, you may be able to protect some of your most important properties through state exemptions. However, these exemptions often have substantial limitations and need to be used very precisely and intelligently to have their maximum effect.
If you are currently considering a bankruptcy filing, we can help you to figure out where to start. To learn more about how we may assist you in your effort begin your new life without debt, contact the Birmingham bankruptcy lawyers of GREENWAY BANKRUPTCY LAW, LLC, by calling (205) 324-4000.
#1: Homestead Exemption
The homestead exemption in Alabama provides a $5,000 protection limit for real estate properties and mobile homes. This amount can be doubled for married couples. This exemption may prove crucial for you and your family to protect your home from foreclosure.
#2: Wildcard Exemption
One of the most important exemptions available under Alabama’s bankruptcy code is the wildcard exemption. You may use this exemption to cover any property, not including life insurance policies, up to $3,000.
#3: Public Benefit Exemption
Many Americans require financial assistance just to get by. If you are receiving assistance due to unemployment, workers’ compensation, permanent disability, or a similar program, you may be allowed to keep these benefits.
#4: Insurance Exemption
The state of Alabama will protect certain types of insurance from bankruptcy proceedings. For instance, life insurance policy proceeds that go to your spouse or children may be exempted from bankruptcy. Also, disability insurance is considered exempt property up to $250 each month.
#5: Tools of the Trade Exemption
Alabama’s exemption for a debtor’s tools of the trade is very limited, but does protect military personnel in the state from losing their uniforms and weapons. If you serve in Alabama, these job-specific properties may be protected.
If you are facing an overwhelming amount of debt, you may file bankruptcy under Chapter 7. To learn more about your exemption options and how we may be able to help you plan ahead, contact the Birmingham bankruptcy lawyers of GREENWAY BANKRUPTCY LAW, LLC, at (205) 324-4000 today.