Servicemember’s Civil Relief Act (SCRA)

military deployment


servicemember's civil relief actThe Servicemember’s Civil Relief Act (SCRA) expanded and improved the former Soldiers’ and Sailors’ Civil Relief Act (SSCRA). The SCRA provides a wide range of protections for individuals entering, called to active duty in the military, or deployed servicemembers. It is intended to postpone or suspend certain civil obligations to enable service members to devote full attention to duty and relieve stress on the family members of those deployed servicemembers. A few examples of such obligations you may be protected against are:

  • Outstanding credit card debt
  • Mortgage payments
  • Pending trials
  • Taxes
  • Terminations of lease.

In addition the law:

  • Expands current law that protects servicemembers and their families from eviction from housing while on active duty due to nonpayment of rents that are $3,451.20 per month or less for 2016, this amount changes every year. 
  • Provides a servicemember who receives permanent change of station orders or who is deployed to a new location for 90 days or more the right to terminate a housing lease.
  • Clarifies and restates existing law that limits to 6 percent interest on credit obligations incurred prior to military service or activation, including credit card debt, for active duty servicemembers. The SCRA unambiguously states that no interest above 6 percent can accrue for credit obligations (that were established prior to active duty or activation) while on active duty, nor can that excess interest become due once the servicemember leaves active duty – instead that portion above 6 percent is permanently forgiven.  Furthermore, the monthly payment must be reduced by the amount of interest saved during the covered period.Note: This law only covers debt incurred prior to military service.
  • Allows you to terminate a cell phone contract if you relocate for at least 90 days to a location that does not support your cell phone service.
  • Allows you to terminate a vehicle lease you signed prior to joining the armed forces if you enter military service under a call to duty on orders of 180 days or more. You may also terminate a vehicle lease if you receive PCS orders to an OCONUS location or deploy OCONUS for at least 180 days.

SCRA Eligibility

The SCRA covers all Active Duty servicemembers, Reservists and the members of the National Guard while on active duty. The protection begins on the date of entering active duty and generally terminates within 30 to 90 days after the date of discharge from active duty.

 

Real Estate Questions for Divorcing Couples

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The depressed real estate housing market is magnifying that tension. “In an average divorce, the biggest asset is the home,” says Evan Sussman, a divorce attorney in Beverly Hills, Calif. “People have lost value on their homes, and they are unable to sell. The equity they had in the home is down.”

In fact, nearly 40% of couples considering a divorce have postponed plans to split because of the economy, according to a recent survey of more than 1,000 couples by the National Marriage Project at the University of Virginia. The study also found that 12% of couples have had trouble paying a mortgage or experienced foreclosure.

Couples who are moving forward with a divorce this year in spite of market obstacles face tough choices: Keep the house and wait to sell until the market is better? Live together in the meantime? Sell now no matter what? When it comes to the house, arriving at a fair solution requires balancing financial decisions and weighing emotional pros and cons.

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Second And Third Marriages Are Failing at an Alarming Rate

divorce

divorce rates

Divorce Rates

“Those who do not learn from history are doomed to repeat it.” George Santayana

Santayana’s warning could apply equally to personal history, like a divorce. Yet despite this, past statistics have shown that in the U.S., 50 percent of first marriages, 67 percent of second, and 73 percent of third marriages end in divorce. What are the reasons for this progressive increase in divorce rates?

Second And Third Marriages Are Failing At An Alarming Rate http://t.co/arxmNB0S via @HuffingtonPost