The Servicemembers Civil Relief Act (P.L. 108-109)

Publication Date: April 2004

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Military and defense

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Abstract:

Recognizing the special burdens that members of the military may encounter in trying to meet their financial obligations while serving their country Congress passed the Soldiers and Sailors Civil Relief Act of 94 SSCRA This law has been amended from time to time ordinarily in response to military operations that require the activation of the Reserves P L 8 89 the "Servicemembers Civil Relief Act SCRA "was enacted on December 9 2 3 and overhauls the SSCRA This report summarizes the rights granted to persons serving on active duty in the U S Armed Forces under the newly enacted SCRA.

SCRA is a comprehensive rewrite of the SSCRA which clarifies language that has been subject to differing interpretations by courts and modifies or expands certain benefits The SCRA provides protections for servicemembers in the event that their military service impedes their ability to meet financial obligations incurred before their entry into active military service The SCRA does not require forgiving any debts or the extinguishment of contractual obligations on behalf of servicemembers who have been called up for active duty nor does it provide absolute immunity from civil lawsuits Instead it suspends claims against servicemembers and protects them from default judgments The SCRA also protects military members and their families from eviction protects against cancellation of life insurance policies or non reinstatement of health insurance policies allows some professionals to suspend malpractice or liability insurance while on active duty and protects from taxation in multiple jurisdictions as well as forced property sales to pay overdue taxes.

The SCRA provides for a cap on interest at an annual rate of 6%on debts incurred prior to a person s entry into active duty military service sets forth procedures for requesting such a reduction and clarifies that the balance of interest for the servicemember s period of military service is to be forgiven by the lender Other measures protect military families from being evicted from rental property or from mortgaged property from cancellation of life insurance from taxation in multiple jurisdictions and from foreclosure of property to pay taxes that are due and from losing certain rights to public land It raises the amount of the rent that qualifies for protection from eviction allows servicemembers on active duty to terminate housing leases and allows some servicemembers to terminate automobile leases