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Protections for Servicemembers - Bankruptcy, Consumer and Foreclosure Protections

Legal Protections While on Active Duty

This article provides information on the specific Financial and Housing protections available to servicemembers under the Servicemembers Civil Relief Act. This article was written by the United States Department of Justice and contains links to resources by various other organizations.

Information below reproduced from the U.S. Department of Justice website.

The Department of Justice promotes financial security for servicemembers, recent veterans, and military family members through its Servicemembers Civil Relief Act ("SCRA") actions brought on behalf of the United States.  The SCRA is a federal law that provides protections for military members as they enter active duty.  It covers issues such as rental agreements, security deposits, prepaid rent, eviction, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosure, civil judicial proceedings, automobile leases, life insurance, health insurance and income tax payments.

Who Does the SCRA Protect?

The SCRA provides a wide range of benefits and protections to those in military service.  Military service is defined under the SCRA as including:

  1. Full-time active duty members of the five military branches (Army, Navy, Air Force, Marine Corps and Coast Guard);
  2. Reservists on federal active duty; and
  3. Members of the National Guard on federal orders for a period of more than 30 days.  Finally, servicemembers absent from duty for a lawful cause or because of sickness, wounds or leave are covered by the SCRA.  Commissioned officers in active service of the Public Health Service (PHS) or the National Oceanic and Atmospheric Administration (NOAA) are also covered by the SCRA.

The SCRA also provides certain benefits and protections to servicemember dependents and, in certain instances, to those who co-signed a loan for, or took out a loan with, a servicemember.  The term “dependent” includes a servicemember’s spouse, children, and any other person for whom the servicemember has provided more than half of their financial support for the past 180 days.  

Click the link below for the full guide from the Department of Justice

SCRA and Bankruptcy

Click the link below for the guide on how the SCRA affects bankruptcy and your rights as a service member.

Click Here

SCRA and Foreclosure

Click the link below for a guide from the Consumer Financial Protection Bureau

Click Here

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