Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act (SCRA) has several ways to offer relief for servicemembers on active federal or state duty that would allow active military members to suspend or postpone some civil financial obligations. The SCRA was signed into law on December 19, 2003, amending the Soldiers' and Sailors' Civil Relief Act (SSCRA) of 1940. The Soldiers' and Sailors' Civil Relief Act (SSCRA) was created to assist and protect important rights of active duty military members and reservists, but had not included members of the National Guard. National Guard Members called to active state duty in response to a national emergency declared by the President of the United States are now recognized under the new statue. If you are a servicemember on active duty, you are under its umbrella of protection from the day you take the oath to the day you leave military service. Any member of the uniformed services serving on active duty is covered under the Act. This includes reserve component personnel called to active duty, Coast Guard personnel, as well as officers of the Public Health Service and the National Oceanic and Atmospheric Administration. Under the provisions of the (SCRA), you may qualify for any or all of the following: * Reduced interest rate on mortgage payments. * Reduced interest rate on credit card debt. * Protection from eviction if your rent is $1,200 or less. * Delay of all civil court actions, such as bankruptcy, foreclosure or divorce proceedings. One of the most significant provisions under the act limits the amount of interest that may be collected on debts of persons in military service of 6 percent per year during the period of military service. This provision applies to all debts incurred prior to the commencement of active duty and includes interest on credit card debt, mortgages, car loans and other debts. The provision applies to pre-service debts, and the interest rate reduction doesn't occur automatically-servicemembers must request it! The (SCRA) also protects your dependents from being evicted while you are serving your country. If you rent a house or apartment that is occupied for dwelling purposes and the rent does not exceed $1,200 per month, the landlord must obtain a court order authorizing eviction. This provision applies regardless of whether quarters were rented before or after entry into military service. This provision is not intended to allow military members to avoid paying rent, but rather to protect families when they cannot pay the rent because military service has affected their ability to do so. To learn more about these or other provisions of the (SCRA), contact your unit or installation legal assistance office.