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In the state of Alabama, are pensions, IRA's and annuities

Resolved Question:

In the state of Alabama, are pensions, IRA's and annuities in case of a lawsuit?
Submitted: 1 year ago.
Category: Estate Law
Expert:  RayAnswers replied 1 year ago.

Hi and welcome to JA. Ray here to help you today.

None of these are accessible to creditors until they are deposited into bank account.The creditor can garnish the bank accounts.You would want to keep minimal funds in the account.Go to cash only or rent safety box and put cash in it.
They cannot get at pensions,IRA, or annuities unless you leave payment sin your bank account in your name.You want to draw them out as soon as you get them if there is a judgment creditor looking to garnish them, so be watchful of that.

I appreciate the chance to help you today.Thanks again.

Expert:  RayAnswers replied 1 year ago.

Alabama debtor exemptions you can claim, these are also good in bankruptcy

Personal Property

Burial plot or church pew for use by you or your family. Ala. Code 6-10-5

Clothing, family portraits, pictures, and books for use by you or your family. Ala. Code 6-10-6

Life insurance proceeds. Ala. Code 6-10-8

Retirement accounts and benefits

IRAs, Roth IRAs, and retirement accounts qualified under the Internal Revenue Code. Ala. Code 19-3B-508

State Employees’ Retirement Systems accounts and benefits. Ala. Code 36-27-28

Teachers’ Retirement System accounts and benefits. Ala. Code 16-25-23

Public Benefits

Earned income tax credit. Ala. Code 38-4-8; 38-5-5; In re James 406 F.3d 1340 (11th Cir. 2005)

Wages and Income

75% of wages or 30 times the federal minimum wage. Ala. Code 6-10-7, 5-9-15

(You can learn more about wage exemptions in Nolo's article Alabama's Wage Garnishment Laws.)

Tools of the Trade

Uniforms and arms of military personnel. Ala. Code 31-2-78


Up to $7,500 of any personal property, except for wages. Ala. Code 6-10-6; 6-10-126 (Learn more in TheAlabama Wildcard Exemption in Bankruptcy.)