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HB96 ENROLLED
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HB96
KHETBU5-2
By Representative Pringle
RFD: Ways and Means Education
First Read: 13-Jan-26
PFD: 17-Dec-25
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PFD: 17-Dec-25
Enrolled, An Act,
Relating to homestead exemptions; to amend Sections
6-10-1 and 6-10-2, Code of Alabama 1975; to increase the
homestead exemption to fifty-six thousand four hundred dollars
($56,400) for residents over 62 years of age and individuals
with disabilities; to require the exemption amounts in
bankruptcy cases be determined by the exemption in effect on
the petition date; to revise Sections 6-10-38 and 6-10-40,
Code of Alabama 1975, to make conforming changes; and to make
nonsubstantive, technical revisions to update the existing
code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 6-10-1 and 6-10-2, Code of Alabama
1975 are amended to read as follows:
"§6-10-1
(a) Except as provided in subsection (b), The the right
of to a homestead or other exemption shall be governed by the
law in force effect when the debt or demand was created, but
the mode or remedy procedures or remedies for asserting,
ascertaining, contesting, and determining claims thereto shall
be as prescribed in this chapter.
(b) For any case filed under the United States
Bankruptcy Code, Title 11 U.S.C., the amount of the debtor's
homestead or other exemption, as provided by this chapter,
shall be governed by the law in effect as of the date the
bankruptcy petition is filed. "
"§6-10-2
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"§6-10-2
(a) The homestead of every resident of this state, with
the including improvements and appurtenances, not exceeding
which does not exceed 160 acres in size and is value no more
than:in value (i) fifteen thousand dollars ($15,000) ; or (ii)
fifty-six thousand four hundred dollars ($56,400) if the
resident is either 62 years of age or older or an individual
with a disability, shall be exempt from levy, sale, execution
or other process for debt collection during his or her
lifetime and occupancy and in area 160 acres, shall be; to the
extent of any interest he or she may have therein in the
property, whether a fee simple or less estate or whether held
in common or in severalty held individually or jointly. ,
exempt from levy and sale under execution or other process for
the collection of debts during his or her life and occupancy
and, if If he or she leaves surviving him or her a surviving
spouse and a minor child, or children, or either, the
exemption applies during the life lifetime of the surviving
spouse and minority of the child, or children, but the area
size of the homestead shall not be enlarged by reason of
increased due to any encumbrance thereon on the property or of
the character nature of the estate or interest owned therein
by him or her he or she owns . When a husband and wife jointly
own a homestead is jointly owned, each owner is entitled to
claim separately the exemption separately provided herein, to
the same extent and value as an unmarried individual. For
purposes of this section and Sections 6-10-38 and 6-10-40, a
mobile home or similar dwelling if used as the principal place
of residence of the individual claiming the exemption shall be
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of residence of the individual claiming the exemption shall be
deemed to be considered a homestead.
(b) For the purposes of this section, "individual with
a disability" has the same meaning as the term is defined in
Section 21-7-1. Proof of disability shall include any of the
following:
(1) A disability determination letter from: (i) the
armed services; (ii) a state or federal government agency;
(iii) a private insurer; or (iv) a workers compensation
settlement agreement.
(2) Receipt of benefits resulting from a disability
determination in subdivision (1).
(3) Written and sworn affidavits of two physicians
licensed to practice medicine in Alabama who certify the
disability, provided that at least one of the physicians is
actively providing treatment directly related to the
disability of the individual seeking the exemption. Physician
affidavits must be on a form prescribed by the Alabama
Department of Revenue for seeking an ad valorem exemption
pursuant to Section 40-9-21. "
Section 2. Sections 6-10-38 and 6-10-40, Code of
Alabama 1975, are amended to make conforming changes to read
as follows:
"§6-10-38
(a)(1) If, on the trial of a contest of a claim of
homestead exemption, it is found that the homestead as claimed
exceeds $5,000 in value (or if a husband and wife have both
claimed the exemption to which each is entitled, $10,000), or
160 acres in area, exceeds the value and size limits set forth
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160 acres in area, exceeds the value and size limits set forth
in this article, the court shall forthwith immediately issue
an order to the sheriff, returnable in no later than 30 days
thereafter from issuance , commanding him or her to summon
three disinterested householders or freeholders of the county
in which the homestead is situated, who located to serve as
commissioners. These individuals , after having been sworn by
the sheriff or some officer an authorized officer to
administer oaths to faithfully discharge their duty, shall, if
practicable possible , shall set off and allot define , by metes
and bounds, the homestead exempt to the defendant exempt from
levy and sale under process, having regard considering both to
the quality and value of the real estate and to the selection
of the defendant and taking land most contiguous to the
dwelling, and including such , the defendant's selection, and
the proximity to the dwelling, including the dwelling and
appurtenances. The commissioners, as soon as practicable ,
shall make return of the homestead so allotted and set off by
them, in writing subscribed by them, to the sheriff, shall
make a written report of the homestead they have allotted and
set off, signed by them, to the sheriff who shall make due
return thereof submit the report to the court issuing the
order.; and the The homestead, thus once allotted and set off,
shall be released from the levy and the residue of the
remaining land sold under the order of the court, unless for
good cause shown, the courts shall set aside the
commissioners' return unless the court finds good cause to set
aside the commissioners' report , in which event another a new
order for summoning to summon commissioners shall be issued.
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order for summoning to summon commissioners shall be issued.
(2) If the commissioners individuals summoned , to serve
as commissioners or any of them, shall fail to act, the
sheriff shall summon others to fill their places.
(b) If the homestead, after having been being reduced
to its lowest practicable area smallest practical size , still
exceeds in value $5,000 (or if a husband and wife have both
claimed the exemption to which each is entitled, $10,000) the
value exemption limits set forth in this article thereby
rendering it impracticable to allot and set it the parcel off
under subsection (a) of this section, the commissioners shall
so make return a report to the sheriff ., who The sheriff
shall thereupon then proceed, as in other cases, to advertise
and offer the same property for sale under the process . If, at
the sale , he or she receives a bid therefor exceeding $5,000
(or if a husband and wife have both claimed the exemption to
which each is entitled, $10,000) exceeding the value limits
set forth in this article, he or she shall sell the same
property , and of the purchase money $5,000 an amount equal to
the exemption allowed under this article shall be paid to the
defendant (or, divided between the spouses if a husband and
wife have both claimed the exemption, $5,000 paid to each) , or
paid into the court for him or her, in lieu of the homestead .,
and the The excess only shall be applied to the satisfaction
of the process debt. ; but if If there are no bids no bid in
excess of the exemption allowed under this article, $5,000 (or
if a husband and wife have both claimed the exemption to which
each is entitled, $10,000) shall be received, the sheriff
shall discharge the levy at the plaintiff's cost and return
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shall discharge the levy at the plaintiff's cost and return
the process ., and thereafter Subsequently, no process issued
to enforce the plaintiff's demand shall be levied on such
homestead so long as it shall continue continues as a
homestead , except on the by a written demand of the plaintiff
accompanied by an offer in writing to purchase the same
homestead for an amount exceeding $5,000 (or if a husband and
wife have both claimed the exemption to which each is
entitled, $10,000), which the exemption allowed under this
article. This offer must state the amount and, at the election
of the defendant, shall be binding on the plaintiff.
(c) When a sale is made under subsection (b) of this
section and any defendant dies before receiving their $5,000
standing in lieu of the homestead his or her homestead
exemption payment , the same payment shall be paid to his or
her personal representative, who shall receive and hold it the
exemption payment subject to the homestead rights of the
defendant's surviving spouse and minor child or children, or
either ., if there be such; but, if there be none such, If
there is no surviving spouse or minor children, the personal
representative shall first apply the same exemption payment to
the payment of the demand for the enforcement of which the
process issued, debt and the balance he or she shall
administer as personal assets of the estate."
"§6-10-40
When the homestead, after being reduced to the lowest
practicable practical area, exceeds $5,000 in value the
exemption amount allowed under this article and the husband or
wife has aliened the same transferred the property by deed,
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wife has aliened the same transferred the property by deed,
mortgage, or other conveyance without the spouse's voluntary
signature and assent of the spouse, shown and acknowledged as
required by law legal acknowledgment , the alienor transferor,
or, if he or she fails to act , the spouse , or, if there is no
spouse or if he or she fails to act, their minor child or
children may , by filing file a complaint , to have the land
sold and the homestead interest separated from that of the
alienee transferee ."
Section 3. This act shall become effective on June 1,
2026.
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2026.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 20-Jan-26.
John Treadwell
Clerk
Senate 26-Feb-26 Passed
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