Under Alabama bankruptcy law, you may be able to exempt certain business property in a bankruptcy case. The specific exemptions available to you will depend on the type of bankruptcy you are filing and your particular circumstances.
Types of Exemptions Available
- In a Chapter 7 bankruptcy, which involves the liquidation of assets to pay off debts, you may be able to use the Alabama Code section 6-10-126(a)(4) exemption to protect tools and equipment necessary to the trade or profession of the debtor or a dependent.
- In a Chapter 13 bankruptcy, which involves a repayment plan over a period of time, you may be able to use the federal bankruptcy exemptions or the Alabama exemptions, depending on which ones are available to you. The federal exemptions include an exemption for business equipment and inventory, as well as a wildcard exemption that can be used for any property.
Always Consult a Professional
However, it's important to note that the exemption rules in bankruptcy can be complex, and there may be limitations or restrictions on what you can exempt. Additionally, the exemption amounts may be subject to change, so it's a good idea to consult with a local Alabama bankruptcy attorney to determine what exemptions are available to you and how best to protect your assets.
Ryan Legal Services, Inc. is ready to help you understand all of your bankruptcy options under federal and Alabama law. Call (251) 241-5234 today to request a consultation!