Will I have to give up all my personal property and real estate if I file for a Chapter 7 Bankruptcy in Alabama?
No. In Alabama if you file a Chapter 7 bankruptcy as an individual you can exempt up to $3,000 (fair market resell value) of personal property that you own outright.
You can also exempt up to $5,000 of equity in real estate.
If you file a joint Chapter 7 bankruptcy with your spouse, these exemption amounts will double.
Many people never lose any property in a Chapter 7 bankruptcy case unless they choose to surrender (give back) property they are financing because they owe more than it is worth or cannot continue to afford the monthly payments.