Bankruptcy by State
Bankruptcy in Alabama
How Alabama's bankruptcy exemptions, Chapter 7 income limits, and filing volume compare to the rest of the country.
Homestead exemption
$18,800
#31 of 51
Vehicle exemption
None (use wildcard)
Wildcard may apply
Median income (1 person)
$64,321
Chapter 7 means-test threshold
Annual filings
20,639
Year 2025
Alabama vs. national medians
National medians are calculated across all 51 states plus the District of Columbia. Ranks run from #1 (highest) to #51 (lowest). Where a state publishes a range or a conditional amount, the exemption is shown in full and ranked by its guaranteed minimum.
| Metric | Alabama | National median | Rank |
|---|---|---|---|
| Homestead exemption | $18,800 | $90,000 | #31 of 51 |
| Motor vehicle exemption | None (use wildcard) | $7,250 | — |
| Median income (1-person household) | $64,321 | $71,745 | #44 of 51 |
| Median income (4-person household) | $106,740 | $126,058 | #45 of 51 |
| Annual bankruptcy filings | 20,639 | 8,707 | #10 of 51 |