Soldier and Sailors Civil Relief Act
The Soldier and Sailors Civil Relief Act (SSCRA) is a
federal law designed to provide protection to active duty military
personnel from certain civil obligations. Passed during World War I
and later re-enacted during World War II, the Act provides coverage to
qualifying members of the military, including Reservists and members of
the National Guard, while serving on active duty until 30 to 90 days after
the date of discharge from active duty.
To qualify for protection under the SSCRA, the
service member must be able to prove that serving on active duty has
materially affected the soldier's ability to meet his or her obligations. To be materially
affected, a service member must show that he or she has suffered due to
economic prejudice (i.e. loss of income due to active duty) or to
geographic prejudice (i.e. duty location prevents service member from
appearing in court). A professional person, such as a doctor,
lawyer or businessman, that is a member of the National Guard, for
example, could claim an economic prejudice when called to active duty if
his active duty pay is considerably less than his civilian employment
before active duty. A service member could claim a geographic
prejudice if her duty station was located across country and she is unable
to appear in court for a civil lawsuit.
A service member may qualify for relief under the
Soldier and Sailor Civil Relief Act from foreclosure if he or she can show
that:
-
Relief is sought from a mortgage or deed of trust
against a home
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The mortgage was originated prior to active duty
-
The property was owned by the service member or
family member prior to active duty
-
The property is still owned by the service member
or family member
-
The service member is materially affected by
active duty service
By establishing the aforementioned facts, a service
member can seek relief from foreclosure by the mortgage company. He
or she should contact the mortgage company and present these facts as soon
as possible.
In addition to relief from foreclosure, a member of
the military on active duty can assist by:
Capping interest rates at 6%. Under the
SSCRA, the maximum interest rate for credit cards, mortgages, and certain
student loans cannot exceed 6% if the obligation originated prior to
active duty. The interest rate reduction only applies during the
term of active duty service and may be reinstated to its pre-active duty
rate after the service member has concluded his or her active duty
service.
Stay of Proceedings. If a service member
is sued while on active duty and is materially affected by active duty
service, a judge may grant a postponement (or stay) at anytime during such
proceedings. Qualifying proceedings include any civil lawsuit, such
as a divorce.
Default Judgments. A default judgment is
a judgment entered against a person for failing to appear in court.
The Soldier and Sailors Civil Relief Act provides protection against
default judgments when a service member is unable to appear in court.
Termination of Leases. If a service
member enters into a lease agreement prior to active duty, he or she may
lawfully terminate the lease without repercussions.
Insurance. A service member is protected
against a lapse, termination, and forfeiture for nonpayment of premiums of
private life insurance. An active duty member may also have health
insurance reinstated if it is terminated during such service.
Certain restrictions may affect a service member from
qualifying for relief under the Soldier and Sailors Civil Relief
Act. Any service member who feels that he or she may be eligible
should consult with his or her legal advocate before claiming relief under
the SSCRA.
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