Thomas, a single homeowner in Mobile, Alabama, has $14,000 in equity in his primary residence. A judgment creditor holding a $20,000 court judgment seeks to satisfy the debt by forcing a sale of Thomas's home. Thomas claims his homestead exemption under Code of Alabama §6-10-2. Which outcome is most consistent with Alabama law?
Correct Answer
A) The creditor cannot force the sale because Thomas's $14,000 equity is fully protected by the $15,000 individual homestead exemption
Under Code of Alabama §6-10-2, Thomas as a single individual is entitled to a $15,000 homestead exemption protecting his primary residence from creditor claims. Because Thomas's total equity ($14,000) is less than the $15,000 exemption, the entire equity interest is shielded from the creditor. A forced sale would produce no surplus above the exemption for the creditor to collect — in fact, the creditor would receive nothing after Thomas's $14,000 exemption claim. Therefore, a court would not order a forced sale when the homeowner's equity is fully within the exemption limit, as the sale would be economically futile for the creditor.
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