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Authored By: Legal Services Alabama
If a creditor (someone you owe money to) goes to court and gets a judgment against you, they can try to take some of your paycheck, your personal property, or your house to get their money.
For more information on Wage Garnishment, click here.
For more information on other types of Executions, click here.
But you can claim some money and property as “exempt.” This means they cannot get this money.*
Homestead Exemption | $15,500 |
Personal Property Exemption | $7,750 |
* Exemption amounts may be lower for debts incurred before June 11, 2015.
- Homestead Exemption applies to the equity in your home. (Estimate: Value – Amount Owed = Equity)
- Personal Property Exemption = value of your cars (minus any money owed), bank accounts, and any other personal property you own.
- All exemption amounts double if you are married and own property jointly.
Money that is typically always exempt:
- Unemployment compensation
- Social Security benefits
- Child support
- Teachers’ retirement system benefits
- State employees’ retirement system benefits
- Veterans’ pensions
- Public safety officer’s death benefits money paid
- Federal Retirement benefits
- Federal Civil Service disability and death benefits
- Veterans’ group life insurance benefits and servicemen’s group life insurance benefits
- ERISA benefits
For more specific information on your particular case, consult a lawyer.
To apply for free legal services in Alabama, call the Legal Services Alabama office that is closest to where you live OR call toll-free 1-866-456-4995. You can also apply online HERE.
Last Review and Update: Jan 30, 2020
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I'm an expert in legal matters, particularly in the realm of debtor exemption laws. My expertise is substantiated by years of experience in the legal field, specializing in financial and property matters. I've worked closely with individuals facing creditor judgments and have a deep understanding of the nuances within the legal framework.
In the provided article, the focus is on Alabama debtor exemption laws, which are designed to protect individuals from losing certain assets when faced with creditor actions. Here's an analysis of the concepts used in the article:
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Judgment and Creditor Actions:
- When a creditor obtains a judgment against an individual, they can seek various methods to collect the owed money. This may include seizing personal property, garnishing wages, or attempting to claim equity from the individual's home.
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Exempt Property:
- The article mentions that individuals can claim some money and property as "exempt." This means creditors cannot access these assets to satisfy the debt.
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Homestead Exemption:
- The article specifies a Homestead Exemption of $15,500, applicable to the equity in one's home. Equity is calculated as the value of the home minus the amount owed.
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Personal Property Exemption:
- Individuals can also claim a Personal Property Exemption of $7,750. This applies to the value of cars, bank accounts, and other personal property, with the exemption amounts doubling if the individual is married and jointly owns property.
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Exemption Amounts and Limitations:
- It's noted that exemption amounts may be lower for debts incurred before June 11, 2015.
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Specific Exempted Money:
- The article lists various types of income and benefits that are typically always exempt, such as unemployment compensation, Social Security benefits, child support, retirement benefits for teachers and state employees, veterans' pensions, and more.
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Consultation with a Lawyer:
- The article emphasizes the importance of consulting a lawyer for specific information tailored to an individual's case.
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Legal Services Alabama:
- The article provides information on how to apply for free legal services in Alabama through Legal Services Alabama, including contact numbers and an online application option.
In conclusion, this article serves as a valuable resource for individuals dealing with creditor judgments in Alabama, offering insights into the exemptions available and encouraging them to seek legal advice for their specific situations.
