Bill > SB720

This bill amends Section 409.3 of the Military and Veterans Code to provide protections for service members regarding their financial obligations. It allows a service member to petition a court for relief from any obligation or liability incurred before their current period of military service, or from any tax or assessment due before or during that service. The court must hold a hearing within 25 days, and the petition is free of filing fees or court costs. If the court finds that military service has materially affected the service member's ability to meet these obligations, it can grant relief such as deferring payments on real estate contracts or mortgages for a period equal to their military service, with deferred payments to be made in equal installments afterward. For other obligations, payments can be deferred during military service and for a period afterward, with the balance and accumulated interest due in installments. The bill also states that no fines or penalties should accrue during a deferment period, and prohibits foreclosure or repossession during this time, with penalties for violations. It clarifies that deferred mortgage payments become due upon sale of the property, further encumbrance, or maturity of the obligation, and does not relieve service members from making payments sufficient for impound accounts unless otherwise agreed. Finally, it specifies that this section does not allow for delays or deferments on child support obligations but permits service members to seek modifications due to reduced income or to have the maximum interest rate applied to pre-service arrearages.