Servicemembers Civil Relief Act (SCRA)
This piece of federal law is designed to protect Servicemembers (including those in the National Guard, Reserve, Coast Guard, and commissioned officers in the Public Health Service (PHS) and National Oceanic and Atmospheric Administration (NOAA)), from financial and legal burdens while they are serving their country. It provides a range of protections that ease obligations and allows Servicemembers to focus on their military duties without undue hardship.
Key protections under the SCRA include:
Interest Rate Cap: Limits interest rates on debts incurred BEFORE military service to 6% while on Active Duty.
In the cases of mortgages, this reduction must last for a year AFTER your period of Active Duty. All other debts return to old rates after the period ends.
Protection from Default Judgments: Cannot be entered against the Servicemember due to failure to appear or defend themself in civil court.
Stay of Proceedings: Servicemembers can request a 90 day delay in civil court and administrative proceedings by submitting:
A letter explaining how military service materially affects your ability to appear in court AND providing a future date when you could appear; and
A letter from your commander confirming your inability to appear at the scheduled court date.
Termination of Cell Phone/Internet/TV/Gym Contracts: Contracts may be ended without penalty if given orders of Permanent Change of Station (PCS) to an area that does not have coverage or deploying for at least 90 days.
Termination of Leases: Servicemembers can terminate residential, car, and business leases without penalty if they enter Active Duty service or receive PCS orders to include separation/retirement.
Protection Against Foreclosure and Eviction (for non-payment): Prevents foreclosure or eviction without a court order, and may delay proceedings if military service affects the servicemember’s ability to respond.
Deferral of Income Taxes: If military service (due to reduced/low pay) makes it so you cannot afford to pay State/Federal income taxes; you can have those payments put off WITHOUT penalty or interest for up to 180 days AFTER your Active Duty ends.
This is NOT a complete list of benefits, for a complete list see the law itself in the reference section.
Enforcement
Most institutions are smart enough to provide you your rights under SCRA without much of a fight when given proper WRITTEN notice with orders/letter from your Commander. However, if you find they need help seeing the light:
Contact your Local military legal assistance office.
Frequently Asked Questions
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It is SSCRA. In that SSCRA was the old name of the current act.
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It depends:
Title 32 under section 502(f): ONLY if activated for MORE than 30 consecutive days by the President or the Secretary of Defense, for purposes of responding to a national emergency declared by the President and supported by Federal funds.
Otherwise, your service under Title 32 is NOT covered.
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Yes!
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Dealings involving foreign businesses, people, courts, etc. are NOT covered by SCRA.
US based companies have to obey SCRA when you give proper notice and have appropriate orders overseas.
All US territories are covered
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No.
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The 90 days is mandatory by law. If you need more than 90 days the court does NOT have to provide an extension. You will need to request an extension similarly to how you made your original request, if not granted previously to the full expected length. However, if the court does not provide a full extension they must appoint you an attorney to represent you.
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Only in so far as lingering protections from when they were on Active Duty.
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Yes, for state income tax; spouses can elect which state they pay taxes into based on 1 of the 3 options below:
Residence of the Servicemember,
Residence of the spouse, or
State Servicemember is stationed in.
Yes, for professional licenses (besides law):
Right to have said license considered valid at a similar scope of practice in the new state.
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Yes, there are no character of service requirements for SCRA.