Which exemption law controls personal property in an Alabama bankruptcy?
Alabama debtors must use state exemptions under Title 6, Chapter 10 of the Code of Alabama, not the federal exemption schedules. Ala. Code § 6-10-6 provides a wildcard-style cap that covers personal property in the aggregate, so vehicles, jewelry, household contents, and business interests all get valued against one state-specific limit. Published figures for that limit disagree (older sources cite $7,500 per debtor, newer commentary reports $9,400 after amendments), so we recommend confirming the current amount with counsel at the time of filing.
Is there a separate motor vehicle exemption in Alabama bankruptcy cases?
No. Alabama provides no dedicated vehicle exemption, so car and truck equity must fit inside the general personal property cap under Ala. Code §§ 6-10-6 and 6-10-12. That makes an accurate vehicle valuation unusually consequential in Alabama: any equity beyond the cap is non-exempt and available to the trustee.
What valuation date applies to personal property in Alabama bankruptcy courts?
Alabama bankruptcy courts generally treat the petition date as the valuation date for personal property when applying 11 U.S.C. § 506(a), including for cramdown and secured-claim purposes. Some courts look to the confirmation date instead for depreciating assets like vehicles, so we document value as of the date your attorney specifies.
What does Alabama count as personal property under the wildcard exemption?
Courts interpret Ala. Code § 6-10-6 to cover household goods and furnishings, automobiles, computers, jewelry, lawn and personal tools, bank accounts, and certain personal injury proceeds. Wages and salaries are excluded from the personal property category, which is why bankruptcy schedules in Alabama focus on itemizing and valuing tangible assets rather than income.