Homestead Exemption in Alabama
State-specific overview · Property & Real Estate
Alabama protects up to $5,000 of home equity for heads of household, with unlimited protection for homeowners age 65+.
How Alabama treats Homestead Exemption
Alabama's homestead exemption shields a primary residence from most creditor claims, but the amount varies by household status. Heads of household receive $5,000 protection; married couples filing jointly get $10,000; and homeowners aged 65 or older receive unlimited protection regardless of home value. The exemption applies in bankruptcy and creditor actions but does not protect against mortgage lenders, tax liens, or mechanics' liens.
The general definition of Homestead Exemption
A legal protection that shields a primary residence from creditors' claims up to a certain value.
A homestead exemption is a law that protects your home from being seized to pay debts. When you claim a homestead exemption, a portion of your home's value becomes off-limits to creditors, even if you file for bankruptcy or lose a lawsuit. The amount protected varies by state, and you typically must file a declaration to activate the protection.
Read the full Homestead Exemption entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Alabama.