Sections of Texas Bankruptcy Code
Public Benefits 56.49
Under the Texas Crime Victims' Award exemption, a debtor filing for bankruptcy has a right to exempt property received in connection to a Crime Victim's Award. This exemption cover's the following:
- An award received through the crime victim's reparation law.
- A payment received due to the wrongful death of an individual who claimed the debtor as a dependent. In this case the exemption will only cover the award to the extent that is necessary to support the debtor and his/her dependents.
- A payment due to personal bodily injury, not to exceed $18,450. This exemption does not include compensation for pain, suffering or reimbursement for the actual loss of money incurred by the debtor or his/her dependents.
- A payment to compensate for the loss of future earnings of the debtor and his/her dependents. This exemption will only cover what is deemed reasonably necessary to financially support the debtor and his/her dependents.
Example: If you received compensation of $10,000 from an assailant who assaulted you, that money would be exempt under the Texas bankruptcy code.
Example: If your spouse was murdered and you received $15,000 a year as compensation from the criminal, that money may be exempt under the Texas bankruptcy code. If your reasonable living expenses are well above $15,000 you would need to prove that you use that money to pay essential bills such as the mortgage. If you can prove that you need the money to support your family it would most likely be exempt from seizure when you file for bankruptcy.