What is the Servicemembers Civil Relief Act (SCRA)?

The Servicemembers Civil Relief Act (SCRA) is a United States federal law that provides various protections and benefits to active-duty military personnel. Enacted in 2003, the SCRA is a revision and expansion of the Soldiers' and Sailors' Civil Relief Act of 1940. The purpose of the SCRA is to ease financial burdens on servicemembers during periods of military service, allowing them to focus on their duties without undue stress from civil obligations.

Key provisions of the SCRA include:

1. Reduced Interest Rates: The SCRA limits the interest rate on pre-service debts, including credit cards, mortgages, and student loans, to 6% per year while the servicemember is on active duty.
2. Stay of Proceedings: Courts can delay civil judicial proceedings involving servicemembers if their military service affects their ability to participate. This includes cases such as bankruptcy, foreclosure, and divorce.
3. Eviction Protection: Landlords cannot evict servicemembers or their dependents from rented housing without a court order, provided the rent is below a certain amount (which is adjusted annually).
4. Termination of Leases: Servicemembers can terminate residential, vehicle, and business leases without penalty if they receive orders for a permanent change of station (PCS) or deployment for a period of at least 90 days.
5. Protection Against Default Judgments: Courts must appoint an attorney to represent servicemembers who are unable to appear in civil actions, preventing default judgments without proper representation.
6. Insurance Protections: Life insurance policies are protected from lapse, termination, or forfeiture due to non-payment of premiums while the servicemember is on active duty.
7. Tax Benefits: The SCRA provides certain state and local tax relief, such as ensuring that a servicemember's military income is taxed only by their home state, regardless of where they are stationed.

Overall, the SCRA is designed to safeguard the legal rights of servicemembers, ensuring that their military service does not adversely impact their financial and legal situations. Contact The Justice Law Firm, LLC for a FREE consultation.