Can I Keep My Home If I File Bankruptcy in Alabama?
Alabama Homestead Exemption – Can I Keep My Home If I File Bankruptcy in Alabama?
Federal bankruptcy exemptions are not available for debtors in Alabama. As a result, those filing for bankruptcy in Alabama are forced to use state law to protect their home. Perhaps one of the biggest causes of anxiety when filing for bankruptcy is the affect the process may have on one’s assets, especially their home. Exemption laws are in place in every state that allow those filing for bankruptcy to keep their assets, such as a home or car, through the bankruptcy process. In many cases, those filing for bankruptcy are able to keep all of their assets. Exemption laws vary by state. In Alabama, residents can protect up to $5,000 of equity in a mobile home or real estate. The property cannot exceed 160 acres and married couples can double the exemption to protect up to $10,000 of equity in their real estate.
Looking for more information? See: What is a Homestead Exemption? Can My Creditors Take My Home?
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