Alabama Laws

Bankruptcy laws in Alabama are slightly different to the laws in other states. Due to this, people in financial trouble should hire an attorney. This attorney should be familiar with Alabama laws regarding bankruptcy.

The biggest difference in the law related to claiming for property exemption. According to state law, properties worth up to $15,000 are exempt. People who plan on leaving their property out of bankruptcy procedures will need to ensure that it is valued under this amount and fits within area restrictions. If a home exceeds size restrictions set out by the law, it will not be exempt. It is important to be aware that the spouse or child of a deceased owner can also claim for homestead exemptions. In the case of divorce, the person awarded the property by the court can apply for the exemption.

In Alabama, people are also able to exclude certain personal items from the proceeding. The personal property exemption list is very long. Items that are on this list include wedding rings, engagement rings, cemetery plots and monuments.

Bankruptcy applicants will be pleased to learn that a minimum of 75% of their earned by unpaid wages is exempt. The court may consider increasing this amount if the debtor has a low income.

Aside from the exemptions discussed above, Alabama law is not that different to laws in other states. People who want to apply for bankruptcy can do so by filling out an application. Once the court receives this application, it will either be approved or denied. If approved, the court will then assess the assets of the applicant. Some assets will be sold off in order to pay outstanding debt. Many debts will be written off by the lender. This is especially true when it comes to debts with no security lodged against them.