Alabama Bankruptcy Laws

Alabama bankruptcy laws are not the different sets of laws. They are the same as described in the bankruptcy code of the United States. The only difference lies in the way they are interpreted. The following important points will let you understand the difference in a better way.

Important Points Of The Alabama Bankruptcy Laws

A debtor filing bankruptcy in Alabama can keep the following properties even after they have been declared as bankruptcy by the Alabama bankruptcy court. The exemptions regarding the properties as per the Alabama bankruptcy laws include the following.

•Residential properties, including both real and mobile properties up to the value of five thousand dollars are exempted. However, in terms of area, the properties must not exceed one hundred and sixty acres. Here again, if a married couple is filing for bankruptcy, they will be allowed to keep 160 acres of the residential properties individually – that makes a total of 320 acres. What is more, if you are planning to sell any or all of these properties, you must mention the same in the bankruptcy forms that you need to fill while filing bankruptcy.

•Insurance policies that are exempted include the following.

◦Disability benefits of two hundred and fifty dollars on a monthly basis.
◦The complete value of the Fraternal and society benefits
◦Any kind of life insurance benefits in case you are the spouse or child of the person insured.
◦All properties associated with a partnership business are exempted.
◦Pension funds of Teachers, State employees, legislators and judges – full value
◦Personal properties that are exempted as per the Alabama bankruptcy laws include books, all types of clothing and family pictures etc.
◦Wild card is exempted up to three thousand dollars of any personal property, but it does not include the life insurance benefits.
◦You can also choose to go for certain federal exemptions along with the exemptions as described by the Alabama bankruptcy laws.