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Read. Follow. Verify.Alabama establishes the Uniform Assignment for Benefit of Creditors Act for distressed business liquidations starting October 1, 2026
Last action · April 17, 2026: EnactedSponsor: Sam Givhan
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What This Bill Does
Senator Givhan's SB 15 creates a voluntary state-level legal process allowing distressed organizations and individuals to assign their assets to a neutral fiduciary for liquidation and distribution to creditors, bypassing federal bankruptcy. Effective October 1, 2026, the act sets strict eligibility requirements for s, establishes notification and claim procedures, and defines duties, powers, and liability protections.
Distressed businesses and creditors gain a formalized state alternative to federal bankruptcy for winding up operations and distributing assets, impacting how debts are resolved, claims are prioritized, and liquidations are managed.
- Assignments for the benefit of creditors (ABCs) have historically functioned as common-law alternatives to federal bankruptcy proceedings for liquidating insolvent businesses. context
- The Uniform Law Commission periodically promulgates uniform acts to harmonize commercial laws across different U.S. states. context
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
Distressed Organizations and Debtors
Debtors utilize the statutory framework to voluntarily assign assets to a fiduciary for liquidation and debt resolution.
Creditors
Creditors receive formal notices, submit proofs of claim, and receive distributions based on statutory priority rules.
Assignees
Assignees take fiduciary custody of assigned assets, manage business winding up, incur expenses, and distribute proceeds.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
What is the Uniform Assignment for Benefit of Creditors Act?
Who is eligible to serve as an assignee?
How much time do creditors have to submit a proof of claim?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
Current status: Became law.
Procedural history
21 actions- Apr 17, 2026SenateEnrolledEnacted
- Apr 8, 2026HouseSignature Requested
- Apr 8, 2026SenateEnrolledDelivered to Governor
- Apr 8, 2026SenateEnrolled
- Apr 8, 2026SenateReady to Enroll
- Apr 7, 2026HouseFloorMotion to Read a Third Time and Pass - Adopted Roll Call 1237
Show 15 earlier actions
- Apr 7, 2026HouseThird Reading in Second House
- Feb 25, 2026HouseRead for the Second Time and placed on the Calendar
- Feb 25, 2026HouseCommitteeReported Out of Committee Second House
- Feb 12, 2026HouseCommitteePending Committee Action in Second House
- Feb 12, 2026HouseIntroducedRead for the first time and referred to the House Committee on Financial Services
- Feb 11, 2026SenateEngrossed
- Feb 10, 2026SenateFloorMotion to Read a Third Time and Pass as Amended - Adopted Roll Call 332
- Feb 10, 2026SenateGivhan motion to Adopt - Adopted Roll Call 331
- Feb 10, 2026SenateFiscal Responsibility and Economic Development 1st Amendment Offered
- Feb 10, 2026SenateThird Reading in House of Origin
- Jan 21, 2026SenateRead for the Second Time and placed on the Calendar
- Jan 21, 2026SenateCommitteeReported Out of Committee House of Origin
- Jan 21, 2026SenateFiscal Responsibility and Economic Development 1st Amendment
- Jan 13, 2026SenateCommitteePending Committee Action in House of Origin
- Jan 13, 2026SenateIntroducedRead for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic Development
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Creation of State-Level Bankruptcy Alternative
The act introduces a standardized, state-administered mechanism for winding up distressed companies outside of federal bankruptcy courts.
Connected Entities
Sources
alison.legislature.state.al.us
Analysis Score
0–100- Significance80How much this matters to a regular citizen
- Controversy20Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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