Sections of Texas Bankruptcy Code
MISC 10, 1035, 46, 1111 , 38 and 562
Although a military servicemember's property can be seized during bankruptcy depending on the situation and type of property, there are certain protective exemptions under the Texas bankruptcy law.
The Texas bankruptcy code states that if a debtor is serving in the military his/her military deposits in savings accounts are exempt from seizure while on permanent duty outside of the United States. In addition, U.S. courts may stop any judgment, including garnishments and attachments against the military service member if the ability to repay the debt is directly affected by his/her service in the military according to the Texas bankruptcy law. Although some military servicemember property is exempt a judge can order the servicemember to repay the debt in installments. If a judge uses this Texas bankruptcy exemption it will usually stay enforced until the debtor's military service has ended, plus three months. If you're a military servicemember, it is important to know that the Servicemembers' Civil Relief Act prevents default judgments against military debtors while they are on active duty outside of the United States.
Other Military Exemptions
- Military group life insurance
- Seamen's clothing and wages while on duty
- Military survivor's benefits