SB327 Alabama 2015 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2015

Title

Debtors, homestead exemption and personal property exemption, increased, Secs. 6-10-2, 6-10-6, 6-10-11, 43-8-110, 43-8-111, 43-8-113, 43-8-115 am'd.

Summary

The bill increases Alabama's homestead and personal property exemptions, excludes wages from the personal property exemption, and adds automatic inflation adjustments to these exemptions.

What This Bill Does

It raises the debtor's individual homestead exemption from $5,000 to $15,000 and the personal property exemption from $3,000 to $7,500. It also increases the surviving spouse's homestead allowance to $15,000 and the exemption for household effects to $7,500. It adds a new provision that wages are not considered personal property for exemption purposes, and creates automatic, inflation-based adjustments to these exemption amounts every three years starting in 2017, with changes applying to cases filed after the specified April 1 following each adjustment. The changes take effect immediately upon the bill becoming law.

Who It Affects

• Debtors, surviving spouses, and minor or dependent children, who will have higher homestead and related exemption amounts available to protect property from creditors or during estate proceedings.
• Residents with wages and creditors/garnishers, since wages are no longer treated as part of the personal property exemption, and exemptions will adjust upward over time with inflation.

Key Provisions

• Increase the individual homestead exemption from $5,000 to $15,000 and keep the 160-acre limit.
• Increase the personal property exemption from $3,000 to $7,500 and retain protections for clothing, family items, and books; wages remain subject to other exemptions.
• Increase the surviving spouse's homestead allowance to $15,000 and adjust related provisions governing shares to minor or dependent children.
• Add Section 6-10-6.1 to explicitly exclude wages, salaries, or other compensation of a resident from being personal property exempt under the personal property exemption.
• Add Sections 6-10-12 and 43-8-116 to provide automatic adjustments to exemption amounts for inflation every three years, starting July 1, 2017, with amounts published by the State Treasurer and applied to cases filed after April 1 following each adjustment.
• Make the act effective immediately upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Homestead Exemption