Alabama Public Benefit Exemptions

The provisions of the bankruptcy code can change depending on the state in which the debtor files for bankruptcy. Although the most basic parts of the code generally stay the same, exemptions are often set by the state. In particular, public benefits may be treated differently in bankruptcy proceedings under the laws of a particular state. These benefits help those who need assistance from others or who are owed compensation from an injury.

Bankruptcy proceedings can involve a large number of possible exemptions or requirements, each depending on the debtor’s circumstances and the state’s laws. Contact the Birmingham bankruptcy lawyers of [firm-name], today by calling [phone-number] for help determining which exemptions may apply to you.

What Exemptions are Available?

In the state of Alabama, as in many other states, exemptions are established generally for benefits that are used to cover major medical expenses or are tied to injury settlements. These funds compensate injured workers or victims of crimes. However, not all settlements are covered under these bankruptcy laws.

The following exemptions are available in Alabama:

  • Workers’ compensation
  • Unemployment pay
  • Public disability benefits
  • Black lung compensation pay
  • Southeast Asian War POW compensation

Insurance and other coverage may be protected under Alabama law, but is often capped at a certain level. These funds are exempted under bankruptcy law primarily due to their use. These payments assist those who depend on the financial support these programs provide.

Contact Us

Debtors who are facing bankruptcy must make many important financial decisions. In these situations, the legal guidance of a knowledgeable advisor can help debtors better understand where the law can help them. To discuss the options available to you, contact the Birmingham bankruptcy attorneys of [firm-name], at [phone-number] today.

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