HB 96 Alabama House · 2026 Regular Session

Debtors homestead exemption; in bankruptcy cases; increase homestead exemption for seniors and disabled

HB 96 increases Alabama's homestead exemption to $56,400 for residents aged 62 or older and individuals with disabilities, up from the current $15,000. It changes bankruptcy rules so the exemption amount used is based on the date a bankruptcy petition is filed - not the date the debt was incurred. This bill directly affects seniors and disabled Alabama residents by providing greater protection for their primary homes against creditors and bankruptcy-related debt collection. The law also updates related legal language to reflect these changes while maintaining the existing 160-acre property size limit for homestead protection.

Issues: ✓ Housing

Bill status signed all 5 stages cleared

Introduction

Dec 2025

Committee Review

Feb 2026

House Passage

Jan 2026

Senate Passage

Feb 2026

Signed into Law

Mar 2026

Introduced Dec 17, 2025 Signed Mar 5, 2026

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What changed between versions

Introduced → Enrolled · 4 edits · Mar 5, 2026

MODERATE

This bill updates Alabama's homestead exemption laws to increase the protected home value to $56,400 for seniors (62+) and people with disabilities, changes the timing for bankruptcy exemption calculations, and adds specific rules for proving disability.

Scope change

The bill expands the scope of protection to explicitly cover individuals with disabilities alongside seniors and clarifies how exemptions apply in bankruptcy cases.

ELIGIBILITY

Increased the homestead exemption amount from $15,000 to $56,400 for residents over 62 years of age and individuals with disabilities.

REQUIREMENT

Changed the rule for bankruptcy cases so the exemption amount is determined by the law in effect on the petition filing date, rather than the date the debt was incurred.

DEFINITION

Added a specific list of acceptable documents to prove disability, such as determination letters from government agencies or affidavits from two physicians.

TECHNICAL

Updated code language to clarify that mobile homes used as a principal residence are considered a homestead and made minor formatting corrections.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 26, 2026

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 650

upper

Feb 25, 2026

Upper · Passed

Reported Out of Committee Second House

upper

Jan 20, 2026

Upper · Passed

Pending Committee Action in Second House (Finance and Taxation Education)

upper

Jan 20, 2026

Lower · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 45

lower

Jan 14, 2026

Lower · Passed

Reported Out of Committee House of Origin

lower

Jan 13, 2026

Lower · Passed

Pending Committee Action in House of Origin (Ways and Means Education)

lower

1 primary · 0 co-sponsors