What Creditors Can't Take in Alabama
Money, home and vehicle exemptions that protect your property from creditors in Alabama.
Short answer: No separate bank account exemption. Money in a bank account can be claimed as exempt under the general personal property exemption ($9,400 for exemptions claimed on or after April 1, 2024; Ala. Code §§ 6-10-6, 6-10-12, 6-10-37; U.S. Bankruptcy Court, S.D. Ala., Alabama exemption amounts
| Money protected in a bank account | No separate bank account exemption. Money in a bank account can be claimed as exempt under the general personal property exemption ($9,400 for exemptions claimed on or after April 1, 2024; the statute's base figure is $7,500, adjusted for inflation every 3 years). Exempt federal benefits keep their protection under federal law. § 6-10-6 text: https://alison.legislature.state.al.us/code-of-alabama?section=6-10-6. The adjusted amount is from the federal bankruptcy court's table; the State Treasurer publishes the adjustments under § 6-10-12. |
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| Homestead exemption | $18,800 for exemptions claimed on or after April 1, 2024 (statutory base $15,000, adjusted for inflation every 3 years), covering a home of up to 160 acres, including a mobile home used as a principal residence. A 2026 amendment sets a higher figure of $56,400 for a resident who is 62 or older or has a disability. Joint owners may each claim the exemption. Adjusted figures: https://www.alsb.uscourts.gov/node/1487. Whether the $56,400 figure is itself subject to the 3-year inflation adjustment, and the exact effective date of Act 2026-203, were not confirmed from an official source. |
| Vehicle exemption | No separate motor vehicle exemption amount in the general exemption statute. A vehicle may be claimed under the general personal property exemption ($9,400 for exemptions claimed on or after April 1, 2024), which covers personal property the debtor selects. Adjusted figure: https://www.alsb.uscourts.gov/node/1487 |
| Bankruptcy exemptions | Alabama has opted out of the federal exemptions. A debtor in bankruptcy may use only Alabama exemptions plus federal non-bankruptcy exemptions. Source: Ala. Code § 6-10-11 |
Where to get help in Alabama
More Alabama debt & collections
- Statute of Limitations on Debt in Alabama
- Wage Garnishment in Alabama
- How to Respond to a Debt Collection Lawsuit in Alabama
- All Alabama debt & collections rules
FAQ
How much money in a bank account is protected from creditors in Alabama?
No separate bank account exemption. Money in a bank account can be claimed as exempt under the general personal property exemption ($9,400 for exemptions claimed on or after April 1, 2024; the statute's base figure is $7,500, adjusted for inflation every 3 years). Exempt federal benefits keep their protection under federal law.
What is the homestead exemption in Alabama?
$18,800 for exemptions claimed on or after April 1, 2024 (statutory base $15,000, adjusted for inflation every 3 years), covering a home of up to 160 acres, including a mobile home used as a principal residence. A 2026 amendment sets a higher figure of $56,400 for a resident who is 62 or older or has a disability. Joint owners may each claim the exemption.
Can a creditor take my car in Alabama?
No separate motor vehicle exemption amount in the general exemption statute. A vehicle may be claimed under the general personal property exemption ($9,400 for exemptions claimed on or after April 1, 2024), which covers personal property the debtor selects.
Which bankruptcy exemptions can I use in Alabama?
Alabama has opted out of the federal exemptions. A debtor in bankruptcy may use only Alabama exemptions plus federal non-bankruptcy exemptions.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.