Understanding the Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act (SCRA) is a broader form of the old Soldiers and Sailors Civil Relief Act. SCRA came into law during George W. Bush’s administration in 2003. It was created to help members of the U.S. military worry less about financial problems and be able to focus more on their military duties and their families.
Who Does SCRA Protect?
The Servicemembers Civil Relief Act covers active and deployed service members and their families. Those who are newly enlisted and reservists who have active duty status are included in this number. Spouses and families of military members may also be eligible for tax protection and other benefits.
Is There a Time Limit for SCRA?
Your protection by the SCRA begins as soon as you start active duty. If you leave the military, your coverage will remain in place somewhere between 30 and 90 days after the date you leave. There are certain SCRA benefits that may affect or alleviate your need to file for bankruptcy.
How Will the SCRA Help Me?
The SCRA prevents certain legal actions and penalties to which civilians are subject. For example, your family cannot be evicted if their stateside rent is equal to or less than $1,200 a month. If you receive a transfer, you will not have to pay certain penalties for breaking your lease. This protects your family from experiencing financial stress and worry .
You are also protected from being made to pay double taxes if you or your spouse are employed in a state that is different from your permanent legal address.
Besides those benefits, the SCRA also prevents loss of your life insurance while you are on active duty, even for nonpayment of premiums, plus you may be charged no more than 6% interest rate on credit card debt incurred before you began active duty.
Mortgages and SCRA
If you are having trouble keeping up your mortgage payments, ask your lawyer to explain how the Servicemembers Civil Relief Act may help you. In most cases, lenders cannot foreclose on or sell your home while you are on active duty and protected by the SCRA. This is true even if you obtained your mortgage before you began active duty.
Health Insurance and the SCRA
If, after deployment, you no longer remain on active duty after the expiration of your term, your employer must immediately reinstate your health insurance benefits so they are comparable with those you had when you left to join the service. Your coverage cannot be denied even if you suffer from a physical disability, particularly if that ailment or illness resulted from the services you performed for your country.
Contact a Minnesota bankruptcy attorney and a military legal representative to learn how the SCRA can help active military members and their families. You may also want to contact your local U.S. Department of Housing and Urban Development (HUD) to see if they can assist you further.
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