The Homestead Exemption
Each state sets up special exemptions for their bankrupt debtors, giving these individuals a chance to keep important property through the Chapter 7 process. Alabama has several exemptions for properties such as tools of trade and wildcard sums. However, the homestead exemption is extremely important for many people facing bankruptcy.
To learn more about your bankruptcy options and how we can help you move forward, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, at (205) 324-4000 today.
How Does the Exemption Work?
Alabama’s homestead exemption provides a set sum of money that may be used specifically to prevent the loss of real estate or a mobile home. This money may prove crucial to prevent foreclosure, which can leave a family without a place to stay following bankruptcy. The following rules are set for Alabama’s homestead exemption:
$5,000 for an individual
$10,000 for a married couple
Property cannot exceed 160 acres
Cannot use exemption after an attempted sale
This exemption provides home owners with a chance to keep their property in the event of a bankruptcy, which can help maintain financial stability for the future. Although their credit score may be damaged by the bankruptcy, the value of their property can help improve future credit opportunities.
If debt has brought you to a financial crisis point, bankruptcy may be a viable solution. For more information regarding your rights and options as a debtor, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000 today.