Alabama
Bankruptcy in Alabama (2026): Exemptions & Means Test
Independently fact-checked against primary sources (last audited August 16, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 16, 2026. · 8 primary sources cited on this page. How we verify our legal content
Bankruptcy is governed by federal law, but the property you can protect when you file in Alabama is set largely by Alabama's own exemption statutes. Alabama has opted out of the federal bankruptcy exemptions, so filers here use the state list under Title 6, Chapter 10 of the Code of Alabama. This guide explains Alabama's exemptions, the Chapter 7 means test, and where cases are filed, with current figures dated so you can confirm they are still in effect.
This is general legal information, not legal advice, and it does not predict any outcome in an individual case. Exemption amounts and median-income figures change, so verify the current numbers before relying on them.
Federal vs. Alabama exemptions: an opt-out state
When you file bankruptcy, exemptions decide which property you keep. Federal law lets each state require its residents to use the state's own exemption list instead of the federal set in 11 U.S.C. 522(d), and Alabama has done exactly that. Under Ala. Code 6-10-11, an Alabama debtor's estate is exempt only to the extent provided by Alabama law and by federal laws other than the 522(d) federal bankruptcy exemptions.
In practice this means Alabama filers cannot pick the federal exemption menu. They use Alabama's state exemptions in Title 6, Chapter 10, combined with separate federal protections that exist outside the bankruptcy exemption list (for example, Social Security and most retirement accounts). About 35 states have opted out in this way, and Alabama is one of them.
Alabama homestead exemption
The homestead exemption protects equity in your primary residence. For most filers Alabama sets the homestead at $18,800, the adjusted amount effective April 1, 2024, covering a home and up to 160 acres. Ala. Code 6-10-2 states a base figure of $15,000, and Ala. Code 6-10-12 directs the State Treasurer to re-index the dollar amounts in the article for inflation every three years, with the Alabama bankruptcy courts publishing the current adjusted figures.
Alabama sets a much larger homestead for older residents and residents with a disability. Under Ala. Code 6-10-2(a), as amended by Act 2026-203 effective June 1, 2026, a resident who is either 62 years of age or older or an individual with a disability may claim a homestead valued at up to $56,400, roughly three times the general figure, on the same 160 acres.
Ala. Code 6-10-2(b) defines an individual with a disability by reference to Ala. Code 21-7-1 and lists the accepted proof. That includes a disability determination letter from the armed services, a state or federal government agency, a private insurer, or a workers compensation settlement agreement; receipt of benefits resulting from such a determination; or sworn affidavits from two physicians licensed in Alabama, at least one of whom is actively treating the qualifying condition.
Alabama also allows joint owners to stack the homestead. Ala. Code 6-10-2(a) provides that when a homestead is jointly owned, each owner is entitled to claim the exemption separately, to the same extent and value as an unmarried individual. Act 2026-203 deleted the earlier language that limited this to a husband and wife, so any co-owner who files may claim a separate exemption, and two co-owners who both file can roughly double the protected equity.
Because the amounts are re-indexed periodically, confirm the figure in effect on your filing date. Ala. Code 6-10-1(b), added by the same Act, provides that in a case filed under the Bankruptcy Code the amount of the debtor's homestead or other exemption is governed by the law in effect on the date the petition is filed. The next triennial adjustment under Ala. Code 6-10-12 applies to exemptions claimed on or after April 1, 2027.
Motor-vehicle and personal-property exemptions
Alabama does not have a stand-alone car exemption. Instead, it provides a personal-property exemption of $9,400 (effective April 1, 2024) under Ala. Code 6-10-6, which a filer can apply to a vehicle, household goods, or other personal belongings, except wages. Because this single allowance has to cover a car along with other property, equity in a paid-off or low-loan vehicle is a common planning concern in Alabama cases.
Like the homestead, this personal-property amount is indexed every three years under Ala. Code 6-10-12, and because the statute exempts the property of each resident, two people who both file can generally each claim it.
Wages are handled separately, and the operative rule is a state statute rather than federal law alone. Ala. Code 6-10-6 expressly excludes wages, salaries, and other compensation from the personal-property allowance and points to Ala. Code 6-10-7, which exempts 75 percent of a resident employee's wages, salaries, or other compensation from garnishment for contract debts and tort judgments. Under that section the garnishee retains 25 percent and pays only that portion into court.
Federal law adds its own ceiling. The Consumer Credit Protection Act at 15 U.S.C. 1673(a) limits garnishment to the lesser of 25 percent of disposable earnings for the week or the amount by which those disposable earnings exceed 30 times the federal minimum hourly wage, which can leave a low-wage earner protected in full.
The Chapter 7 means test in Alabama
The means test determines whether a Chapter 7 filing is presumed abusive. The first step compares your household's current monthly income, annualized, against the median family income for your household size in Alabama. If you are at or below the median, there is no presumption of abuse and you do not need to complete Form 122A-2, but that alone does not make you eligible for Chapter 7; if you are above it, a second calculation of disposable income decides whether the presumption of abuse arises.
The U.S. Trustee Program publishes the median-income figures and updates them periodically. For cases filed on or after July 15, 2026, the Alabama medians are $64,321 for a household of one, $77,451 for two, $92,698 for three, and $106,740 for four, with $11,100 added for each additional person above four. These numbers change roughly twice a year, so check the current table at justice.gov/ust for your filing date.
Chapter 7 vs. Chapter 13 in Alabama
Chapter 7 is a liquidation bankruptcy. A trustee can sell non-exempt property to pay creditors, and most remaining qualifying debts are discharged, usually within a few months. Because Alabama's exemptions are modest, careful exemption planning matters, but many filers keep all or nearly all of their property.
Chapter 13 is a reorganization. Instead of liquidation, you repay some or all of your debt through a three-to-five-year plan, which can help you cure a mortgage default and keep a home or stop a foreclosure. Either way, filing triggers the automatic stay under 11 U.S.C. 362, which immediately stops most collection calls, lawsuits, wage garnishment, and foreclosure while the case proceeds.
Where you file in Alabama
Alabama is divided among three federal judicial districts, each with its own U.S. Bankruptcy Court: the Northern District of Alabama (Birmingham and surrounding areas), the Middle District of Alabama (Montgomery), and the Southern District of Alabama (Mobile). You file in the district that covers your county of residence.
The same Alabama state exemptions apply in all three districts, but local rules, forms, and procedures can differ. Before filing, completing a credit-counseling course from an approved provider is required, and a financial-management course is required before discharge.
What bankruptcy can and cannot do
Bankruptcy discharges many common debts, including credit cards, medical bills, personal loans, and most older unsecured debt. It cannot erase everything. Domestic-support obligations such as child support and alimony, most recent taxes, and most student loans generally survive a discharge, and debts from fraud may be challenged by creditors.
If a paid-off car or home equity could run past Alabama's limited exemptions, get a free bankruptcy evaluation from an Alabama lawyer on what is protected and which chapter fits (attorney advertising). The figures here are current as of the dates noted; confirm the latest amounts before you rely on them.
Frequently Asked Questions
Does Alabama use state or federal bankruptcy exemptions?
Alabama has opted out of the federal bankruptcy exemptions under Ala. Code 6-10-11. Filers must use Alabama's state exemptions in Title 6, Chapter 10 of the Code of Alabama, along with non-bankruptcy federal protections such as Social Security and most retirement accounts. You cannot choose the federal 522(d) list in Alabama.
What is the homestead exemption in Alabama?
Alabama's homestead exemption is $18,800 for most filers, the adjusted amount effective April 1, 2024, covering a primary residence and up to 160 acres. Ala. Code 6-10-2(a) allows up to $56,400 if the resident is 62 or older or is an individual with a disability, a category added by Act 2026-203 effective June 1, 2026. The amounts are re-indexed every three years under Ala. Code 6-10-12, and each joint owner who files can claim the exemption separately.
Does Alabama have a larger homestead exemption for seniors or people with disabilities?
Yes. Under Ala. Code 6-10-2(a), as amended by Act 2026-203 effective June 1, 2026, a resident who is either 62 years of age or older or an individual with a disability may claim a homestead valued at up to $56,400 instead of the general figure. Section 6-10-2(b) sets out the accepted proof of disability, including a disability determination letter, receipt of benefits from such a determination, or sworn affidavits from two Alabama-licensed physicians.
What is the Alabama median income for the means test?
For cases filed on or after July 15, 2026, the U.S. Trustee Program lists Alabama's median family income as $64,321 for one person, $77,451 for two, $92,698 for three, and $106,740 for four, adding $11,100 per additional person. These figures update periodically, so verify the current table at justice.gov/ust.
Will I lose my house or car if I file bankruptcy in Alabama?
It depends on your equity and the exemptions. Alabama protects up to $18,800 of home equity for most filers, or up to $56,400 if you are 62 or older or have a disability, and each joint owner who files can claim the exemption separately. A $9,400 personal-property allowance can be applied to a vehicle, since there is no separate car exemption. Equity above those limits may be at risk in Chapter 7, while Chapter 13 can help you keep secured property by repaying over time.
How much of my wages can be garnished in Alabama?
Alabama has its own wage exemption. Ala. Code 6-10-7 exempts 75 percent of a resident employee's wages, salaries, or other compensation from garnishment for contract debts and tort judgments, and the garnishee retains and pays in only the remaining 25 percent. The federal Consumer Credit Protection Act at 15 U.S.C. 1673(a) adds a separate cap of the lesser of 25 percent of disposable earnings or the amount by which they exceed 30 times the federal minimum wage. Different rules apply to child support and most taxes.
Does Alabama have a motor-vehicle exemption?
Alabama does not have a dedicated car exemption. Filers protect vehicle equity using the general personal-property exemption of $9,400 (effective April 1, 2024) under Ala. Code 6-10-6, which must also cover other belongings. Two people who both file can generally each apply the allowance.
Where do I file bankruptcy in Alabama?
You file in the U.S. Bankruptcy Court for the district covering your county: the Northern District (Birmingham area), the Middle District (Montgomery), or the Southern District (Mobile). The same Alabama exemptions apply statewide, but local rules and forms can vary by district.
What debts cannot be discharged in Alabama bankruptcy?
Bankruptcy generally cannot erase child support and alimony, most recent tax debt, and most student loans, and creditors can challenge debts arising from fraud. Most credit-card balances, medical bills, and personal loans are typically dischargeable. A credit-counseling course is required before filing.
What is the difference between Chapter 7 and Chapter 13 in Alabama?
Chapter 7 discharges qualifying debts in a few months, but a trustee can sell non-exempt property. Chapter 13 sets up a three-to-five-year repayment plan that can cure a mortgage default and protect property. Both invoke the automatic stay under 11 U.S.C. 362, which halts most collection and foreclosure when you file.
Updates
Clarified that income at or below the state median means the presumption of abuse does not arise under the Chapter 7 means test, not that a filer qualifies for Chapter 7.
Updated the Alabama exemption sections for Act 2026-203, which effective June 1, 2026 added a $56,400 homestead exemption for residents who are 62 or older or have a disability, extended the separate homestead claim to any joint owner rather than only a married couple, and fixed the exemption amount as of the bankruptcy petition date; the wage section now cites Alabama's own 75 percent garnishment exemption under Ala. Code 6-10-7 instead of attributing that protection solely to federal law, and the means-test figures were confirmed current against the U.S. Trustee table for cases filed on or after July 15, 2026.
Independently fact-checked against the cited primary sources; governing law re-checked for recent changes
Governing law re-checked for recent changes
Governing law re-checked for recent changes
Reviewed and approved by an editor
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Code of Alabama 1975, Title 6: Civil Practice.
§ 6-10-11Exemptions in Federal Bankruptcy.In forcecited in 2 of our articles
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 Title 11 of the United States Code.
Official text (excerpt) · last checked 2026-09-06 · Read the full text in our law library · Verify at alison.legislature.state.al.us
Cited in 17 court opinions in our collectionLatest citing opinion in our collection: 2008
Opinions citing this section in our collection:
- First National Bank of Mobile v. Alton A. Norris (Court of Appeals for the First Circuit 1983, 701 F.2d 902)“…cifically disallowed the subsection (d) federal exemptions. Ala.Code § 6-10-11 (Supp.1982). 6 Thus, in Al…”
- Dominion Bank of the Cumberlands, Na v. James R. Nuckolls Judy M. Nuckolls (Court of Appeals for the Fourth Circuit 1985, 780 F.2d 408)“…151326 (1982)) 2 See Ala.Code Sec. 6-10-11 (Supp.1985); Alaska Stat. Sec. 09.38.0…”
- Daniel G. Hamm v. Tomeka Scott James (Court of Appeals for the Eleventh Circuit 2005, 406 F.3d 1340)“…and created its own exemptions for individual debtors. See Ala. Code § 6-10-11 (1975) (stating that in bankruptcy case…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Alabama Homestead Exemption: Amounts, Deadline and How to Apply
§ 6-10-2Homestead Exemption - Amount; Area.In forcecited in 2 of our articles
(a) The homestead of every resident of this state, including improvements and appurtenances, which does not exceed 160 acres in size and is valued at no more than: (i) fifteen thousand dollars ($15,000); or (ii) fifty-six thousand four hundred dollars ($56,400) if the resident is either 62 years of age or older or an individual with a disability, shall be exempt from levy, sale, execution or other process for debt collection during his or her lifetime and occupancy to the extent of any interest he or she may have in the property, whether a fee simple or less estate held individually or jointly. If he or she leaves a surviving spouse and a minor child, or children, or either, the exemption applies during the lifetime of the surviving spouse and minority of the child, or children, but the size of the homestead shall not be increased due to any encumbrance on the property or of the nature of the estate or interest he or she owns. When a homestead is jointly owned, each owner is entitled to claim the exemption separately to the same extent and value as an unmarried individual.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at alison.legislature.state.al.us
Cited in 23 court opinions in our collectionLatest citing opinion in our collection: 2018
Opinions citing this section in our collection:
- Gowens v. Goss (Supreme Court of Alabama 1990, 561 So. 2d 519)“…Beatrice. The Statutory Right to a Homestead Exemption Ala. Code 1975, § 6-10-2 (Supp. 1988) and § 6-10-3 , are essen…”
- In Re Rester (District Court, S.D. Alabama 1984, 46 B.R. 194)“…estate or interest owned therein by him or her. Ala.Code § 6-10-2 (Supp.1983). The previous law placed a…”
- Matter of Carter (United States Bankruptcy Court, N.D. Alabama 1997, 213 B.R. 26)“…sed amendments to exemptions was one for a homestead under Ala. Code §§ 6-10-2 , 6-10-4 et. seq. with res…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 6-10-6Personalty.In forcecited in 2 of our articles
The personal property of such resident, except for wages, salaries, or other compensation, to the extent of the resident’s interest therein, to the amount of seven thousand five hundred dollars ($7,500) in value, to be selected by him or her, and, in addition thereto, all necessary and proper wearing apparel for himself or herself and family, all family portraits or pictures and all books used in the family shall also be exempt from levy and sale under execution or other process for the collection of debts. No wages, salaries, or other compensation shall be exempt except as provided in Section 5-19-15 or Section 6-10-7.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at alison.legislature.state.al.us
Cited in 26 court opinions in our collectionLatest citing opinion in our collection: 2020
Opinions citing this section in our collection:
- Roberts v. Carraway Methodist Med. Ctr. (Court of Civil Appeals of Alabama 1991, 591 So. 2d 870)“…nal property exemption was increased from $1,000 to $3,000. Ala. Code 1975, § 6-10-6 . Section 6-10-6 now provides in pe…”
- Ex Parte Avery (Supreme Court of Alabama 1987, 514 So. 2d 1380)“…Appeals that future wages cannot be claimed as exempt under Ala. Code 1975, § 6-10-6 , and with its reasoning that "property…”
- Sumlin Constr. Co., LLC v. Taylor (Supreme Court of Alabama 2002, 850 So. 2d 303)“…gnized as exempt from bankruptcy administration pursuant to Ala. Code 1975, § 6-10-6 . No party to the bankruptcy proceeding…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Alabama Debt Collection Laws: Wage Garnishment, Statute of Limitations, and Repossession
§ 6-10-12Adjustments to Exemption Values.In force
On July 1, 2017, and at the end of each 3-year period thereafter, the State Treasurer shall adjust each dollar amount in this article or, for each adjustment after July 1, 2017, each adjusted amount, by an amount determined by the State Treasurer to reflect the cumulative change in the consumer price index, as published by the United States Department of Labor, or, if that index is no longer published, a generally available comparable index, for the 3-year period ending on the December 31 preceding the adjustment date and rounded to the nearest twenty-five dollars ($25.00). The State Treasurer shall publish the adjusted amounts. The adjusted amounts apply to exemptions claimed on or after April 1 following the adjustment date.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at alison.legislature.state.al.us
Cited in 1 court opinions in our collectionLatest citing opinion in our collection: 2018
Opinions citing this section in our collection:
- Redstone Fed. Credit Union v. Whited (District Court, N.D. Alabama 2018, 584 B.R. 71)“…e for a couple of decades." Id. at 459-60 (citing Ala. Code § 6-10-12 ). In Andrews v. Ernandez , the d…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 6-10-7Wages, Salaries, or Other Compensation of Laborers or Employees for Personal Services.In forcecited in 2 of our articles
(a) The wages, salaries, or other compensation of laborers or employees, residents of this state, for personal services, shall be exempt from levy under writs of garnishment or other process for the collection of debts contracted or judgments entered in tort in an amount equal to 75 percent of such wages, salaries, or other compensation due or to become due to such laborers or employees, and the levy as to such percentage of their wages, salaries, or other compensation shall be void. The court issuing the writ or levy shall show thereon the amount of the claim of the plaintiff and the court costs in the proceedings. If at any time during the pendency of the proceedings in the court a judgment is entered for a different amount, then the court shall notify the garnishee of the correct amount due by the defendant under the writ or levy. The garnishee shall retain 25 percent of the wages, salaries, or other compensation of the laborer or employee during the period of time as is necessary to accumulate a sum equal to the amount shown as due by the court on the writ or levy.
Official text (excerpt) · last checked 2026-09-02 · Read the full text in our law library · Verify at alison.legislature.state.al.us
Cited in 4 court opinions in our collectionLatest citing opinion in our collection: 2016
Opinions citing this section in our collection:
- Lana M. Henderson v. Henry A. Henderson. (Court of Civil Appeals of Alabama 2011, 73 So. 3d 1282)“…ld necessarily include the former husband’s contention that Ala.Code 1975, § 6-10-7, which speaks to exemptions from garnis…”
- First National Bank of Jasper v. Robinson (In Re Robinson) (United States Bankruptcy Court, N.D. Alabama 1999, 240 B.R. 70)“…potentially applicable statutes, Ala.Code § 5-19-15 (1996), Ala.Code § 6-10-7 (1993), or 15 U.S.C.S. § 1673 (Law.Co…”
- Wheeler Bros. Inc. v. Jones (District Court, M.D. Alabama 2016, 167 F. Supp. 3d 1283)“…s health insurance. (Doc. #67-4). Virginia Jones cites to Ala. Code § 6-10-7 for the proposition that 75% of wages…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 6-10-1Law Governing Exemptions and Claims.In force
(a) Except as provided in subsection (b), the right to a homestead or other exemption shall be governed by the law in effect when the debt or demand was created, but the procedures or remedies for asserting, ascertaining, contesting, and determining claims thereto shall be as prescribed in this chapter. (b) For any case filed under the United States Bankruptcy Code, Title 11 U.S.C., the amount of the debtor’s homestead or other exemption, as provided by this chapter, shall be governed by the law in effect as of the date the bankruptcy petition is filed.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at alison.legislature.state.al.us
Cited in 5 court opinions in our collectionLatest citing opinion in our collection: 2018
Opinions citing this section in our collection:
- St. Paul Fire & Marine Ins. Co. v. Nowlin (Supreme Court of Alabama 1989, 542 So. 2d 1190)“…well as ex contractu (e.g., 11 U.S.C. § 101 et seq.; and Ala.Code 1975, § 6-10-1 et seq.); and the courts have interpret…”
- Goldsby v. Stewart (District Court, S.D. Alabama 1983, 46 B.R. 692)“…state statutes in effect at the time the debt was incurred. Ala.Code § 6-10-1 (1975) provides as follows: The…”
- In Re Rester (District Court, S.D. Alabama 1984, 46 B.R. 194)“…rmined by the statutes in force when the debt was created. Ala. Code § 6-10-1 (1975). Therefore, it follows that to…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
United States Code Title 11
§ 522ExemptionsIn forcecited in 54 of our articles
In this section— “dependent” includes spouse, whether or not actually dependent; and “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate. Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 7,574 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Taylor v. Freeland & Kronz (1992) held that a trustee who does not object within the 30-day period cannot later challenge an exemption claimed under 522(l), even one with no statutory basis. Owen v. Owen (1991) held that 522(f) lien avoidance is not defeated by a state exemption written to exclude lien-encumbered property.
Opinions citing this section in our collection:
- Taylor v. Freeland & Kronz (Supreme Court of the United States 1992, 503 U.S. 638)✓A Chapter 7 debtor listed the entire proceeds of her TWA discrimination suit as exempt and the trustee let the 30-day objection window lapse; the Court held that under § 522(l) the property is exempt once no one objects, even absent a colorable statutory basis.
- Patterson v. Shumate (Supreme Court of the United States 1992, 504 U.S. 753)✓A debtor's $250,000 ERISA pension interest was excluded from his estate under § 541(c)(2); answering a surplusage argument, the Court read § 522(d)(10)(E) as exempting a broader set of plans, and expressly declined to decide whether § 522(b)(2)(A) also applied.
- Owen v. Owen (Supreme Court of the United States 1991, 500 U.S. 305)✓An ex-wife's judgment lien attached to a Florida condo before state law made it a homestead; the Court held § 522(f) measures impairment against the exemption the debtor would have had but for the lien, so Florida's carve-out for prior liens did not defeat avoidance.
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy Laws by State (2026): Exemptions & Means Test, Bankruptcy in Alaska (2026): Exemptions & Means Test, Bankruptcy in Arizona (2026): Exemptions & Means Test
§ 362Automatic stayIn forcecited in 54 of our articles
Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of— the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; any act to create, perfect, or enforce any lien against property of the estate; any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; any act to…
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 19,606 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (1988) held that an undersecured creditor gets no interest as adequate protection under 362(d)(1) for delay caused by the stay. NLRB v. Bildisco & Bildisco (1984) applied 362(a) in requiring claims be pursued through bankruptcy administration, not suit.
Opinions citing this section in our collection:
- Clinton v. Jones (Supreme Court of the United States 1997, 520 U.S. 681)“…ublic interests. Brief for Petitioner 34-36. See, e. g., 11 U. S. C. § 362 (litigation against debtor stayed upon…”
- United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (Supreme Court of the United States 1988, 484 U.S. 365)✓An undersecured lender on a Houston apartment project sought monthly payments as the price of continuing the § 362(a) automatic stay; the Court held that 'adequate protection' under § 362(d)(1) does not entitle it to interest for the delay in foreclosing on its collateral.
- Pennzoil Co. v. Texaco Inc. (Supreme Court of the United States 1987, 481 U.S. 1)“…if it were forced to file for bankruptcy under Chapter 11. 11 U. S. C. §362 . Texaco, or its successor in interest,…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy in Arkansas (2026): Exemptions & Means Test, Bankruptcy in California (2026): Exemptions & Means Test, Bankruptcy in Colorado (2026): Exemptions & Means Test
Code of Alabama 1975, Title 21: Handicapped Persons.
§ 21-7-1Declaration of Policy; Definitions.In force
(a) It is the policy of this state to encourage and enable the blind, the visually impaired, and the physically disabled to participate fully in the social and economic life of the state and to engage in meaningful employment. (b) For the purposes of this chapter, the following terms shall have the following meanings: (1) HANDLER. Includes an individual with a disability and a trainer. (2) HOUSING ACCOMMODATION. Any real property or portion thereof which is used or occupied, or intended, arranged, or designed to be used or occupied, as the home, residence, or sleeping place of one or more individuals, but does not include any single-family residence, the occupants of which rent, lease, or furnish for compensation not more than one room therein. (3) INDIVIDUAL WITH A DISABILITY. As defined by 42 U.S.C. §12102, and further defined as an individual who has a physical or mental impairment, including a physical, sensory, psychiatric, intellectual, or other mental disability, that substantially limits one or more major life activities of the individual. (4) MAJOR LIFE ACTIVITY.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at alison.legislature.state.al.us
United States Code Title 15
§ 1673Restriction on garnishmentIn forcecited in 13 of our articles
Except as provided in subsection (b) and in section 1675 of this title, the maximum part of the aggregate disposable earnings of an individual for any workweek which is subjected to garnishment may not exceed 25 per centum of his disposable earnings for that week, or the amount by which his disposable earnings for that week exceed thirty times the Federal minimum hourly wage prescribed by section 206(a)(1) of title 29 in effect at the time the earnings are payable, whichever is less. In the case of earnings for any pay period other than a week, the Secretary of Labor shall by regulation prescribe a multiple of the Federal minimum hourly wage equivalent in effect to that set forth in paragraph (2). The restrictions of subsection (a) do not apply in the case of any order for the support of any person issued by a court of competent jurisdiction or in accordance with an administrative procedure, which is established by State law, which affords substantial due process, and which is subject to judicial review. any order of any court of the United States having jurisdiction over cases under chapter 13 of title 11. any debt due for any State or Federal tax.
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 450 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Courts have read the section 1673 garnishment cap narrowly. Kokoszka v. Belford (1974) held that "disposable earnings" reaches periodic compensation and not an income tax refund, so the cap did not keep a refund out of the bankruptcy estate. Jordan v. Chase Manhattan Bank (2015) held section 1673 creates no private right of action.
Opinions citing this section in our collection:
- Hisquierdo v. Hisquierdo (Supreme Court of the United States 1979, 439 U.S. 572)“…and amended § 303 of the Consumer Credit Protection Act, 15 U. S. C. § 1673 (b), to pre-empt state law by limiting…”
- Kokoszka v. Belford (Supreme Court of the United States 1974, 417 U.S. 642)✓A bankrupt argued the 25 percent garnishment cap exempted 75 percent of his $250.90 income tax refund from the trustee; the Supreme Court held Section 1673's limit covers periodic compensation, not a tax refund, so the whole refund passed to the estate.
- Jordan v. Chase Manhattan Bank (District Court, S.D. New York 2015, 91 F. Supp. 3d 491)✓After a Florida garnishment froze a disabled borrower's bank account holding disability benefits, she sued under Section 1673; the court held the section creates no private right of action and is enforced by the Secretary of Labor, and dismissed the claim.
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy in Georgia (2026): Exemptions & Means Test, Bankruptcy in South Dakota (2026): Exemptions & Means Test, Debt Collection Laws by State: Garnishment, SOL, and Repossession Rules
Sources and References
- U.S. Bankruptcy Court, Southern District of Alabama: current Alabama exemption amounts ($18,800 homestead, $9,400 personal property, effective 4/1/24)(alsb.uscourts.gov).gov
- Code of Alabama, Title 6, Chapter 10 (Exemptions), including 6-10-2 homestead, 6-10-6 personalty, 6-10-11 federal-bankruptcy opt-out, 6-10-12 triennial adjustment(alison.legislature.state.al.us).gov
- U.S. Trustee Program, Census Bureau Median Family Income by Family Size, cases filed on or after April 1, 2026 (Alabama: $64,321 / $77,451 / $92,698 / $106,740)(justice.gov).gov
- 11 U.S.C. 522, exemptions and the state opt-out authority under 522(b)(law.cornell.edu)
- 11 U.S.C. 362, the automatic stay that halts collection on filing(law.cornell.edu)
- U.S. Courts: federal court locator confirming Alabama's Northern, Middle, and Southern bankruptcy districts(uscourts.gov).gov
- Ala. Code 6-10-2 (homestead exemption, amount and area), as amended by Act 2026-203: $15,000 base or $56,400 for a resident 62 or older or an individual with a disability, and separate claims by each joint owner(alison.legislature.state.al.us).gov
- Ala. Code 6-10-7, Alabama's own wage exemption: 75 percent of a resident employee's wages, salaries, or other compensation is exempt from garnishment and the garnishee retains 25 percent(alison.legislature.state.al.us).gov
- Alabama Act 2026-203 (HB96, 2026 Regular Session, enrolled), amending Ala. Code 6-10-1 and 6-10-2; Section 3 makes the Act effective June 1, 2026(alison.legislature.state.al.us).gov
- U.S. Trustee Program, Census Bureau Median Family Income by Family Size, cases filed on or after July 15, 2026 (Alabama: $64,321 / $77,451 / $92,698 / $106,740, plus $11,100 per additional person)(justice.gov).gov
- 15 U.S.C. 1673(a), the federal Consumer Credit Protection Act cap on garnishment of disposable earnings(law.cornell.edu)
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