Servicemember's Civil Relief Act
Introduction
The Servicemember's Civil Relief Act of 1940 (SCRA) provides a wide range of protections for individuals entering or called to active duty in the military.
The SCRA is intended to postpone or suspend certain civil obligations to enable service members to devote full attention to duty. The act does not apply to criminal matters. Reservists and the members of the National Guard are also protected under the SCRA while on active duty.
The protections generally begin on the date of entering active duty and terminate within 30 to 90 days after the date of discharge from active duty. Members who face problems in the areas below should visit the legal office without delay.
Rent
The SCRA prohibits eviction, without a court order, of a service member and their dependents from rented housing where the rent does not exceed $1200.00 per month. The court may delay eviction proceedings for up to three months.
Installment Contracts
A service member who enters into an installment contract prior to entering active duty is protected if the member's ability to make payments is materially effected by military service. Here the courts will compare the service member's pre-service income and military income to determine the member's financial condition. The creditor is prevented from exercising rights of recission, termination or repossession without a court order.
Maximum Rate of Interest
If, prior to entering active duty service, a member incurs a loan or obligation with an interest rate in excess of 6%, the member will, upon application to the lender, not be obligated to pay interest in excess of 6% per year. This relief applies during the period of active duty service unless a court finds the member's ability to pay has not been materially effected by military service.
Stay of Proceedings
Courts have the discretion to delay a civil court proceeding when the requirements of military service prevent the member from either asserting or protecting a legal right. Usually, requests for a stay are granted if the time period requested is limited (TDY, exercise, deployment). Availability of leave (including excess leave) and duty requirements are key factors.
Default Judgments
Before a court can enter a default judgment (for failure to respond to a lawsuit or appear at trial) against a military member, the person suing the member must provide the court with an affidavit stating the defendant is not in the military.
If the defendant is in the military, the court will appoint an attorney to represent the defendant's interests (usually to seek a stay of proceedings).
If a default judgment is entered against a service member, the judgment may also be reopened if the member makes application within 90 days of leaving active duty and demonstrates both prejudice and a legal defense.
Insurance
A service member's private life insurance policy is protected against lapse, termination or forfeiture for nonpayment of premiums for a period of military service plus two years. The insured or beneficiary must apply to the Veteran's Administration for protection. Also, any health insurance in effect on the day before active military service commenced is reinstated without waiting periods or physical condition restrictions.
Taxation
A service member's state of legal residence may tax military income and personal property. A member does not lose legal residence solely because of a transfer pursuant to military orders.
For example, if a member is a Virginia resident and PCS'd to a base in California, the member will not lose Virginia residency nor be subject to California state income tax on military pay.
Adverse Actions
Creditors and insurers are prohibited from pursuing adverse actions (i.e. notifying credit agencies, denying credit, changing terms) against service members who exercise their rights under the SCRA.
Conclusion
If you have any questions about whether the SCRA applies to you, stop by the Base Legal Office for more information about your rights under the SCRA.