Alabama has opted out of the federal bankruptcy exemptions.
“In cases instituted under the provisions of Title 11 of the
United States Code entitled ‘Bankruptcy,’ there shall be exempt
from the property of the estate of an individual debtor only that
property and income which is exempt under the laws of the
State of Alabama and under federal laws other than
Subsection (d) of Section 522 of said Title 11 of the United
States Code.” Alabama Code § 6-10-11.
However, Alabama's opt-out provision has been construed to
apply only to Alabama residents. In re Walley, 9 B.R. 55 (Bankr.
S.D.Ala.1981) (opt-out applies only to Alabama residents).
Therefore, if this state is the applicable state (as determined
by the method stated on the home page of this site) debtors
who are not Alabama residents on the date of filing bankruptcy
may use the federal exemptions.
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