Alabama Homestead Exemption

 

How much of your home equity is protected if you file for bankruptcy in Alabama?

ADVERTISEMENT -
AD_GOOGLE_2_RESPONSIVE_PRE_CONTENT

.
 

Homestead Exemptions - State System
(State Law + Federal Non-Bankruptcy Law)

Homestead Exemption Under Alabama Law

Real property or mobile home to $18,800 (increased to $18,800, April 1, 2024); property cannot exceed 160 acres (husband & wife may double)

Amount Joint amount

18,800

32,900

NOTE: Residency Requirement Caps Maximum Homestead at $189,050 if you've recently moved to a State that allows more than that

Under the 2005 bankruptcy law, you must be have lived in the state for at least 40 months (3 years + 4 months) before you can claim any homestead protection greater than $189,050. (If your state's exemption offers less than this amount, the law is irrelevant to you.) .

Federal Non-Bankruptcy Homestead Exemptions

These are exemptions under federal law, but and are NOT part of the bankruptcy code list of exemptions in 522(d), so states cannot "opt out" from these exemptions. These exemptions available in every State ONLY IF you are using the state exemptions. You cannot use these exemptions if you are using the federal bankruptcy exemption scheme under § 522(d)

-

Homestead Exemptions - Federal Bankruptcy Exemptions 
(Exemptions under 11 U.S.C. § 522(d) only)

Can Alabama debtors use the Federal Bankruptcy exemptions instead of Alabama exemptions?

No. Federal Exemptions not available. Ala. Code § 6-10-11.

The Federal Bankruptcy Exemptions under 11 U.S.C. § 522(d) are available to you if

  • you haven't lived in any state longer than 180 days for a while,
  • or
  • if your state allows the Federal exemptions as a choice.

ADVERTISEMENT -

Free Bankruptcy Case Evaluation For Greene County, AL

Do you have questions about filing bankruptcy in Alabama, and think you might need a bankruptcy lawyer? Use the form below to connect with the Nolo / Martindale network of bankruptcy lawyers For Greene County, AL.
SPONSORED FORM - Nolo/Martindale Attorney Network



Jurisdictional relevance: ST

There are versions of this article for each State.