Bankruptcy Law in Alabama

What it means in Alabama:
Bankruptcy law in Alabama follows federal bankruptcy law, but Alabama-specific rules determine what property filers are allowed to keep during the process.

Key points:

• Cases are filed in U.S. Bankruptcy Court for the appropriate Alabama District
• Alabama has opted out of federal bankruptcy exemptions
• Filers must use Alabama state exemption laws
• Federal bankruptcy chapters still apply (Chapter 7, Chapter 13, etc.)

Alabama-specific considerations:

• Alabama provides a homestead exemption that protects limited equity in a primary residence
• Personal property exemptions apply to household goods, clothing, and certain personal items
• Married couples filing jointly may be able to double certain exemptions
• A filer must generally have lived in Alabama for at least two years to use Alabama exemptions

Whom it applies to:

• Alabama residents struggling with unsecured or secured debt
• Homeowners facing foreclosure
• Individuals or small business owners seeking debt relief