Navigating Financial Burdens with the Servicemembers Civil Relief Act (SCRA)

Serving your country shouldn’t add financial stress.

Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act (SCRA) understands this and provides crucial protections for active duty personnel and their families. This guide delves into the SCRA’s key benefits, helping you navigate potential financial challenges with confidence.

Who qualifies?

Active duty members of all branches (Army, Navy, Air Force, Marine Corps, Coast Guard)
Reservists on federal active duty for over 30 days
National Guard members on federal orders for over 30 days
Servicemembers on authorized leave due to illness, injury, or other reasons
Public Health Service (PHS) and National Oceanic and Atmospheric Administration (NOAA) commissioned officers

What protections does the SCRA offer?

Reduced interest rates: Cap interest rates on certain pre-service debts (loans, credit cards) at 6% while on active duty and for one year after discharge.
Foreclosure and repossession protection: Creditors need court orders before foreclosing on mortgages or repossessing vehicles obtained before service.
Lease termination: End residential leases early without penalty upon deployment or permanent change of station orders (lasting at least 90 days).
Eviction protection: Evictions require court orders and consideration of your military service.
Tax relief: Defer tax payments or penalties incurred during active duty.
Civil court protection: Get appointed attorneys if sued and courts may delay proceedings while on active duty.

Taking advantage of your SCRA benefits:

Act quickly: Claim interest rate reduction within 180 days of discharge.
Provide written notice: Inform creditors and landlords of active duty status and utilize SCRA protections.
Seek legal help: If facing legal challenges, consult attorneys specializing in military law and the SCRA.

Remember: The SCRA is a powerful tool, but understanding its nuances is crucial. This guide provides a starting point, but for specific situations, consult legal professionals familiar with military law and your unique circumstances.