Alabama Land

[RobbiLee]

I am trying to figure out the real property exemption in Alabama. We gave our property to our daughter in 2003. Suddenly, my husband has lost his job, is being sued over a failed business venture and is required to individually file Bankruptcy. His income will be pretty much zero.

Question. I know the exempt for real property reads something like $5,000 for mobile and not to exceep 160 acres. We have 40 acres.

We did not give this property to our daughter to defraud anyone. We did it simply to forego any future "estate" issues as she is an only daughter short of a step daughter who may try to take it from her in the event the title wasn't clearly in her name before our deaths. So now it is all hers.

However, we also do not want to lie on the bankruptcy petition. Since the property is less than 40 acres, is it exempt either way? There is a small house on it that is incomplete - it is hers.

Not sure where to go from here - please someone help!

[DeadManCrawling]

Are you filing in Alabama? Ch7 or 13?

Is the exemption you mention a homestead exemption?

It may not matter, since the transaction happened six years ago. That is a long time, in BK terms. Not totally out of range, which is usually ten years, but far enough in the past that the land, if it has any value, may be safe anyway. I would call an attorney and set up a free consult or three and ask this exact question.

Hopefully others will add some opinions here, too.

Welcome to the forum!

-dmc

[RobbiLee]

We are hoping for Chapter 7. The problem is...husband was a homebuilder. He had an insane client but she has plenty of money. She hired an attorney to sue him for something like $1,000,000 for a door that was mis-installed by one of his subs. It WAS misinstalled. However, the business has folded and we can not even afford an attorney to defend the case - she knows that. So, bankruptcy is our biggest hope. Thanks for the advice.