Servicemembers Civil Relief Act (SCRA)

The Servicemembers Civil Relief Act (“SCRA”) has been available to those men and women serving our country since the end of World War II. As one might expect, it covers a wide range of legal relief to those serving in the Army, Navy, Marine Corps, Air Force, and Coast Guard. It also applies to reservists who are on federal active duty and the National Guard when its units are under federal orders for thirty (30) or more days.

Loans and mortgages can be a strain on servicemembers and their families, whether they are stationed stateside or deployed overseas. SCRA can, if certain qualifications are met, entitle servicemembers to a cap on interest rates and mortgages at 6% per year. In those cases, the creditor must forgive, not defer, the amount of interest that accrued over that 6% level. The cap on interest rates may also apply to federally guaranteed student loans.

SCRA also prevents default judgment from being entered against a servicemember. This can be useful in disputes over rent, contracts, and other matters. In fact, SCRA also contains provisions that assist servicemembers in terminating their leases early when they receive orders to a new duty station. Additionally, it provides families of servicemembers the ability to terminate a lease when their servicemember is severely injured as a result of their active duty status.

The men and women of our Armed Forces sacrifice a great deal in the defense of our country. The Servicemembers Civil Relief Act helps ease a great many of the burdens that they have to endure.

If you have questions about qualifying for relief under SCRA, contact us at (317) 825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.