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Bankruptcy in Alabama: Exemptions and Filing Guide

State-specific bankruptcy exemptions and filing information for Alabama. These exemptions determine what property you can keep when filing Chapter 7 bankruptcy.

Data last updated: Jan 15, 2025

Key Takeaways

  • Homestead exemption: $16,450 (up to 160 acres).
  • Vehicle exemption: $3,950 per vehicle.
  • Must use state exemptions (no federal option).
  • Attorney fees: $1,000–$1,800 (Ch. 7) / $2,500–$4,000 (Ch. 13) typical.
$16,450 (up to 160 acres) Homestead exemption
$3,950 per vehicle Vehicle exemption
No Federal option
$338 (Chapter 7) / $313 (Chapter 13) Filing fee

Alabama Bankruptcy Exemptions

  • Homestead$16,450 (up to 160 acres)
  • Vehicle$3,950 per vehicle
  • Personal property$8,225 in personal property
  • WildcardNone
  • Federal exemptionsNot available

Means Test: Alabama Median Income

To qualify for Chapter 7 in Alabama, your income must be below the state median or you must pass the means test showing no disposable income for creditors.

  • 1 person$52,441
  • 2 people$63,894
  • 3 people$71,664
  • 4 people$84,196

Filing Costs

  • Court filing fee$338 (Chapter 7) / $313 (Chapter 13)
  • Typical attorney fee$1,000–$1,800 (Ch. 7) / $2,500–$4,000 (Ch. 13)
  • Court districtsNorthern, Middle, and Southern Districts of Alabama

Alabama bankruptcy court

Related Resources

Frequently Asked Questions

  • What is the homestead exemption in Alabama?

    Alabama allows a homestead exemption of up to $16,450 for real or personal property used as a residence, covering up to 160 acres.

  • Can I use federal bankruptcy exemptions in Alabama?

    No. Alabama requires debtors to use the state exemption system rather than the federal exemptions.

  • How long does Chapter 7 bankruptcy stay on my credit in Alabama?

    A Chapter 7 bankruptcy remains on your credit report for up to 10 years from the filing date.

  • What is the means test for Chapter 7 in Alabama?

    If your income is below the Alabama median for your household size, you typically qualify for Chapter 7. If above, you must pass a means test showing insufficient disposable income.

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