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Alabama Asset Protection Laws

Fact checked on April 22, 2012.

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These assets are exempted from a state court or bankruptcy proceeding in Alabama.

Homestead. Real property or mobile home up to $5,000; husband and wife may double. Property cannot exceed 160 acres or 320 acres for a husband and wife.

Pensions and Retirement Benefits. Funds exempt for judges (only payments being received), law enforcement officers, state employees and teachers. IRA exemptions for conventional, SEP and SIMPLE plans. Roth IRAs and regular IRAs up to $1,095,000 per person.

Insurance. Annuity proceeds or avails to $250 per month. Disability proceeds or avails to an average of $250 per month. Fraternal society benefits. Life insurance proceeds or avails if beneficiary is insured's spouse or child. Life insurance proceeds or avails if clause prohibits proceeds from being used to pay beneficiary's creditors. Mutual aid association benefits.

Personal Property. All necessary household goods and clothing, family pictures and books. Family burial plots and church seats.

Tools of Trade:. Tools personally used by and essential to debtor's business. All personally owned uniforms, arms and equipment. One motor vehicle is exempt if used by and essential to the debtor's business, subject to consensual security goods.

Wages. 75% of earned but unpaid wages; for consumer loans/leases, greater of 75% of weekly disposable earnings or 30 times the federal minimum wage.

Miscellaneous. Business partnership property.

Public Benefits. Unemployment compensation. Workers' compensation. Aid to blind, aged, disabled. AFDC (Aid to Families with Dependent Children). Coal miner's pneumoconiosis benefits. Crime victim's compensation. Southeast Asian War POWs benefits.

Wild Card. Any personal property up to $3,000, except life insurance.

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