Alabama Bankruptcy Laws Are Different Than Those In Other States Of America
Apurva Shree
February 14, 2008
The Alabama bankruptcy laws are a bit different as compared to the other states of the United States of America. If you are a permanent of resident of Alabama planning filing impoverishment, it is important for you to know the specific laws that are applicable only in Alabama. Furthermore, you also need to be very careful while hiring the bankruptcy attorney to handle your specific case. You must make sure that the attorney you have hired is aware of the specific laws of your state. What is more, you also have to make sure that the attorney has a valid license to handle these cases in the state of Alabama.
The basic difference of the insolvency regulations in the state lies in the way the various property exemptions have been interpreted under the state bankruptcy laws. Let me give you a brief insight into some of the important points in this regard.
Residential Properties Exemptions
When it comes to claiming for various properties exemptions, the homestead exemptions are perhaps the most important one. As per the state rules, the maximum amount of properties that you can occupy in this category is fifteen thousand dollars. Again, there is also a restriction regarding the maximum area of such properties. The area of the homestead properties must not exceed one hundred and sixty acres on one tract. The Alabama bankruptcy laws have also mentioned specifically that the spouse or child of deceased owner can also claim for homestead exemptions. What is more, even the spouse given a homestead property in divorce can avail the homestead exemption on that property.
Personal Properties Exemptions
The personal properties exemptions under the state laws include a long list. However, the laws specifically declare engagement and wedding rings as exemptible properties up to the amount of five thousand dollars. Even, cemetery plots and monuments have been specifically added in the list.
Exemptible Wages
There is no mention of wild card exemptions as per Alabama insolvency rules. However, a minimum of seventy five percent of earned but unpaid wages have been declared as exemptible. What is more, the laws have also authorized the y court to allow more amount as wages exemptions in case of a poorly low-income debtor.
As per the Alabama bankruptcy regulations, there is not much difference in the public benefits exemptions. However, the pension funds allowed to be exempted include only the gratuitous payments to employee or heirs whenever paid. The ERISA-qualified benefits can also be considered for such exemptions, but only if the contributions have been made over one year before filing impoverishment process.
Alabama bankruptcy laws have made a few things favorable for the debtors and a few things for the creditors. If you want your bankruptcy attorney to defend your claim in bankruptcy successfully, make sure that he or she is aware of the specific new bankruptcy laws applicable in the state of Alabama.
The basic difference of the insolvency regulations in the state lies in the way the various property exemptions have been interpreted under the state bankruptcy laws. Let me give you a brief insight into some of the important points in this regard.
Residential Properties Exemptions
When it comes to claiming for various properties exemptions, the homestead exemptions are perhaps the most important one. As per the state rules, the maximum amount of properties that you can occupy in this category is fifteen thousand dollars. Again, there is also a restriction regarding the maximum area of such properties. The area of the homestead properties must not exceed one hundred and sixty acres on one tract. The Alabama bankruptcy laws have also mentioned specifically that the spouse or child of deceased owner can also claim for homestead exemptions. What is more, even the spouse given a homestead property in divorce can avail the homestead exemption on that property.
Personal Properties Exemptions
The personal properties exemptions under the state laws include a long list. However, the laws specifically declare engagement and wedding rings as exemptible properties up to the amount of five thousand dollars. Even, cemetery plots and monuments have been specifically added in the list.
Exemptible Wages
There is no mention of wild card exemptions as per Alabama insolvency rules. However, a minimum of seventy five percent of earned but unpaid wages have been declared as exemptible. What is more, the laws have also authorized the y court to allow more amount as wages exemptions in case of a poorly low-income debtor.
As per the Alabama bankruptcy regulations, there is not much difference in the public benefits exemptions. However, the pension funds allowed to be exempted include only the gratuitous payments to employee or heirs whenever paid. The ERISA-qualified benefits can also be considered for such exemptions, but only if the contributions have been made over one year before filing impoverishment process.
Alabama bankruptcy laws have made a few things favorable for the debtors and a few things for the creditors. If you want your bankruptcy attorney to defend your claim in bankruptcy successfully, make sure that he or she is aware of the specific new bankruptcy laws applicable in the state of Alabama.