Filing Bankruptcy in Alabama: Means Test, Exemptions and Courts

Alabama has three federal bankruptcy districts: the U.S. Bankruptcy Court for the Northern District of Alabama (https://www.alnb.uscourts.gov), the Middle District of Alabama (https://www.almb.uscourts.gov), and the Southern District of Alabama (https://www.alsb.uscourts.gov).

1 person: $64,321; 2 people: $77,451; 3 people: $92,698; 4 people: $106,740; add $11,100 for each additional person over 4. These figures apply to bankruptcy cases filed on or after July 15, 2026 (the Census median income data was last updated for cases filed on or after April 1, 2026).

Alabama has opted out of the federal bankruptcy exemptions. In a bankruptcy case, an individual debtor may exempt only property and income that is exempt under Alabama law and under federal laws other than 11 U.S.C. § 522(d).

$18,800 for exemptions effective April 1, 2024 (the court's table shows the amount rising from $5,000 before June 11, 2015, to $15,000, $15,500 (4/1/18), $16,450 (4/1/21) and $18,800 (4/1/24)).

The court's Alabama exemption table lists a general "Personal property" exemption of $9,400 (effective April 1, 2024; previously $8,225 from 4/1/21).

Benefits under a plan, account or arrangement that is or includes a qualified trust under the Internal Revenue Code (including qualified pension, profit-sharing and stock bonus plans, and individual retirement accounts and annuities) are exempt from bankruptcy under 11 U.S.C. § 522(b). The exemption does not apply to taxes, qualified domestic relations orders, contributions above the tax-code limits (and their earnings), or criminal restitution orders.

Alabama exempts 75 percent of a resident employee's wages, salaries or other compensation from garnishment for debts or tort judgments; wages are not covered by the general personal property exemption.

All three courts have pages for people filing without a lawyer. N.D. Ala. has an "Information for Pro Se Bankruptcy Filers" page that warns missing papers can lead to dismissal, notes schedules and the means-test statement are due 14 days after filing, and says the court cannot help prepare documents. M.D. Ala. has a "Filing Without an Attorney" page and local forms. S.D. Ala. offers Electronic Self-Representation (eSR) petition software, a bankruptcy video series, and local forms.

Northern District of Alabama: under Bankr. N.D. Ala. R. 2016-1(l), debtor's counsel in a chapter 13 case need not file a detailed fee application if total compensation does not exceed $5,000.00 (the "Exempt Fee"), effective October 1, 2026 (memorandum dated September 18, 2026; the prior figure was $4,500.00 for cases filed on or after October 1, 2022). If an Exempt Fee is charged, no other fee may be charged without prior court approval except filing fees and actual costs of each amendment to the schedules not attributable to attorney error. Middle District of Alabama: Administrative Order No. 2022-10 (effective for cases filed on or after October 1, 2022) presumes $4,500.00 to be the maximum reasonable compensation for all legal services rendered in a chapter 13 case by the debtor's attorney (the "Presumptive Chapter 13 Fee"); to earn it, the attorney must represent the debtor in all matters related to the main case, including the petition, schedules, plan and amendments, the meeting of creditors and confirmation hearings, claims review and objections, motions, hearings, and discharge filings. No other fees may be charged without court approval except filing fees and court costs. Southern District of Alabama: Administrative Order No. 2025-04 (dated June 25, 2025), for chapter 13 cases filed on or after July 1, 2025, sets "no look" compensation in confirmed cases at not more than the lesser of $4,800 or the amount proposed to be paid (including trustee's commission) to creditors through the plan, with a floor of $2,700 (cap of $1,700 if the court finds the case was filed primarily to finance attorney's fees); "no look" compensation in cases dismissed or converted before confirmation may not exceed $1,200. The order also allows add-on "no look" fees of $600 or 10% of the net settlement (whichever is less) for approval of tort claims, and $600 for substantial work on a sale of the debtor's real property.