The Military Debt Relief Act In A Nutshell
The Servicemembers Civil Relief Act (SCRA) protects those entering or already deployed in the military by relaxing certain civil obligations. These include outstanding credit card debt, mortgage payments, pending trials and taxes. The purpose of this military debt relief act is to relieve servicemembers and their families from the stress that often goes hand in hand with these situations, and allow the individual to focus their full attention on their military duty.
SCRA expands upon previous legislation–the Soldiers and Sailors’ Civil Relief Act (SSCRA)–by improving and updating the protection of servicemembers in many key areas. For example, SCRA increases the scope of the law protecting servicemembers and their families from eviction while they are on active duty. Nonpayment of rent up to $2,932.31 per month are covered; significantly more than the previous £1,200 per month and bringing the legislation in line with the cost of living of the present day. SCRA also prevents “double taxation” i.e. the taxation of a servicemember’s spouse if they work in a state other than the state in which their permanent legal residence is. The Act allows active servicemembers to end a house lease if they have been relocated (temporarily or permanently) to a new location, and to end an automobile lease, provided they meet certain conditions.
In terms of civil lawsuits, servicemembers can request a stay for any lawsuit against them if they are unable to appear in court due to being on active duty. This does not, however, apply to criminal law suits. SCRA applies to all servicemembers who are all on active duty, including reservists and members of the National Guard. They are protected from the day they enter active duty; the protection ends between 30 and 90 days after they are discharged from active duty.
The expansion of the SSCRA through this new legislation has been welcomed by servicemembers. These individuals have greater concerns than their credit rating and household bills when they are on active duty for their country. For their families, it is a relief to not have the worry of debt problems while their loved ones are serving in the military. Contact your local Armed Forces Legal Assistance Program office to find out more about SCRA; if your spouse is on active duty, you can contact them on their behalf. They will be able to talk you through the necessary steps in order to put the protective measures in place.
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