Claiming The Alabama Homestead Exemption In Bankruptcy

According to the terms of the Alabama Homestead Act, the exempt value of property claimed cannot exceed $4,000. The proper method for appraisal under Alabama homestead law requires a realistic market value. The appraisal method is not based on the highest justified value by a professional seller or broker, and similarly, is not based on the lowest value potential from a quick forced sale. When filing bankruptcy, the most favorable appraised value for debtors arrives at the lowest realistic value such as the value reflected in county tax valuations. This value should appear in the Alabama homestead form and may be used when filing bankruptcy.