Patricia, a single homeowner in Tuscaloosa, Alabama, has a judgment creditor attempting to force the sale of her primary residence to satisfy a $20,000 debt. Patricia's home has equity of $22,000. Under Alabama's homestead exemption law, what is the most likely outcome?
Correct Answer
C) The creditor can force the sale but Patricia is entitled to receive $15,000 from the proceeds before the creditor is paid
Under Code of Alabama §6-10-2, Patricia as a single individual is entitled to a $15,000 homestead exemption. When a creditor forces a sale, the homeowner receives the exempt amount ($15,000) from the proceeds first. Since the equity is $22,000, the creditor could pursue a forced sale and would receive the remaining $7,000 after Patricia receives her $15,000 exemption. This is how Alabama's homestead exemption operates — it protects up to $15,000 of equity, not the entire property.
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