What money in my bank account is protected from creditors in Alabama?

1. Federal Floor. Social Security, SSI, SSDI, VA, federal pensions, and OPM annuities are protected under 42 U.S.C. § 407 and 38 U.S.C. § 5301. The 31 C.F.R. Part 212 two-month rule provides automatic bank-level protection.

2. State Wild-Card / Cash Exemption. Ala. Code § 6-10-6 (as amended) provides $7,750 in personal-property exemption (raised significantly in 2015 from $3,000), usable for cash in a bank account — fairly generous wild card. § 6-10-126 provides similar exemption for debtor's family.

3. Other Source-Specific Exemptions. § 38-4-8 public assistance; § 25-4-140 unemployment; § 25-5-86 workers' comp; § 27-14-29 life insurance proceeds; alimony and child support; crime-victim comp; and 75% of disposable wages under § 6-10-7 (or 30× federal min wage).

4. Retirement Accounts. Ala. Code § 19-3B-508 and § 36-27-28 broadly exempt IRAs, 401(k)s, 403(b)s, Roth IRAs, ERISA plans, and public-employee pensions. § 27-14-29(c) protects annuities.

5. Joint Accounts. Alabama does not recognize tenancy by entireties for personalty; joint bank accounts presumed joint tenancy with creditor reaching debtor's contribution share.

6. Claim of Exemption Process. Ala. Code § 6-10-20 to § 6-10-27 and Ala. R. Civ. P. 64B: garnishment served; debtor must file claim of exemption with court; contest hearing follows. Practitioners file within 10 days of service.

7. Burden of Proof. Debtor proves exempt source and lists property under § 6-10-26.

8. Penalty for Wrongful Garnishment. § 6-10-28 imposes damages on creditor who falsely contests claim.

9. Bankruptcy Interplay. Alabama opted out of federal exemptions; Chapter 7 reaches non-exempt cash; Chapter 13 retains.

This is legal information, not legal advice.