Bill > HB96

This bill amends Alabama law to increase the homestead exemption, which is the amount of a person's home that is protected from creditors in bankruptcy cases, for seniors and individuals with disabilities. Specifically, the bill raises the general homestead exemption to $56,400 and allows residents who are 62 years or older or have a disability to claim this higher amount. The bill also clarifies that for bankruptcy cases filed under the U.S. Bankruptcy Code, the homestead exemption amount is determined by the law in effect on the date the bankruptcy petition is filed. Additionally, it updates procedures for setting aside homestead property when the claimed amount exceeds the legal limits and makes conforming changes to related sections of the law. The definition of "individual with a disability" is also clarified, including acceptable forms of proof. This act is set to become effective on June 1, 2026.

Budget and Finance

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