Some education funds are exempt from seizure within limits. According to Alabama bankruptcy law, allowable funds include those that are place in an educational retirement account or qualified tuition program.
They are limited to payments made to the fund within the last 365 days and up to a limit of $5,000 for funds contributed between one and two years. These limits and restrictions are often complex and understanding them often requires the assistance of an experienced lawyer.
If you or anyone you know has questions about what funds are exempt in a bankruptcy filing, contact the Birmingham bankruptcy lawyer Paula Greenway at (205) 324-4000.