Servicemembers Civil Relief Act (SCRA) What’s Inside: 1. 2. 3. 4.
SCRA Coverage Checklist New Additions to the SCRA Free Legal Assistance for Servicemembers Legal Assistance Offices Can Help With
SCRA - WHAT IS IT? What the SCRA Covers for All Active Military Recognizing the special burdens that members of the military may encounter trying to meet their financial obligations while serving their country, in 1940 Congress passed the Soldiers’ and Sailors’ Civil Relief Act (SSCRA). The law was amended from time to time, ordinarily in response to military operations that required the activation of the Reserves. P.L. 108-189, the Servicemembers Civil Relief Act (SCRA), was enacted on December 19, 2003 as a modernization and restatement of the protections contained in the SSCRA. Much like with the SSCRA, the SCRA has been amended since its initial passage and proposed changes continue to be introduced in Congress. SCRA Coverage Checklist 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. In addition, the SCRA: •
Allows servicemembers who are parties in civil lawsuits (such as paternity and child custody suits) to request a stay if their military service precludes their attendance in court;
•
Protects servicemembers on active-duty from default judgments if they fail to appear at trial or respond to a lawsuit because of their military service;
•
Caps interest rates on “pre-service” debts at 6% for the duration of the servicemember’s period of military service;
•
•
Protects a servicemember’s life insurance from lapse because of nonpayment of premiums;
•
Provides for reinstatement of any health insurance in effect on the day before active military service commenced, without waiting period and physical restrictions;
•
Allows servicemembers who have pre-service professional liability insurance policies to suspend premiums and coverage during the period of military service;
Prevents landlords from evicting servicemembers on active duty for nonpayment of rents below a certain threshold, except by court order;
•
Allows servicemembers on active duty to defer income tax payments for up to six months after discharge if ability to pay is impaired by military service and clarifies other tax issues;
•
Allows servicemembers to unilaterally terminate pre-service lease contracts following specified procedures;
•
•
Prohibits sale of goods placed in storage either before a military service call or during a period of active service for unpaid charges, except by court order;
•
Prohibits sellers from repossessing, reclaiming, or foreclosing on property that a servicemember contracted to buy under a preservice contract, except by court order;
Prohibits the use of personal assets to satisfy business obligations even though the servicemember may be personally liable (50 USC App. § 596); and Prohibits both creditors and insurers from pursuing adverse actions (e.g., notifying credit agencies, denying credit, changing terms) against servicemembers solely because they exercise SCRA rights (50 USC App. § 518).
•
Authorizes the court to stay proceedings or adjust obligations in the case of claims filed to enforce mortgage or trust deed payments;
Note: The law includes criminal sanctions of up to one-year imprisonment for violations of certain provisions, including those pertaining to eviction, lease termination, storage liens, installment contracts, and mortgage foreclosures.
HOW THE SCRA CAN HELP YOU New Additions to SCRA and Free Legal Assistance for Servicemembers New Additions to SCRA The Veterans’ Benefits Act of 2010 included four important changes to SCRA that were not addressed in the previous versions of 2003 and 1940. •
Servicemembers can now terminate cell phone contracts when military orders require relocation for more than 90 days to an area that does not support the contract. This applies to family contracts as well as individual contracts.
•
When SCRA protections are broken, in some circumstances the servicemembers may be able to recover attorney fees and court costs.
•
Civil actions may also be brought through the U.S. Attorney General, helping those who can not find or afford an attorney.
•
SCRA Violations can now bring a first-time offender a $55,000 fine and up to $110,000 for additional offenses.
Free Legal Assistance for Servicemembers Free legal assistance is provided to servicemembers and their families based upon available resources and personnel. Veterans are not eligible for these services. Generally, legal assistance is provided to these groups: •
All members of the Armed Forces on active duty (including members of a reserve component),
•
Reservists released from active duty, having served 30 days or more,
•
Retirees from all branches of the service, and
•
Lawful dependents. Federal civilian employees and their dependents are also entitled to legal assistance in certain circumstances.
Military Lawyers are called Judge advocates (JAG). A “judge advocate” is an attorney who has graduated from an accredited law school, and is licensed to practice law by the highest court of a state or by a federal court. Judge advocates assigned to assist individuals with personal legal problems are known as legal assistance attorneys. JAGs can offer help in legal and non-legal matters ranging from purchasing a car to renting an apartment, buying a home, paying taxes or writing a will.
Legal assistance offices are located on almost every base, ship and installation. A servicemember can visit one of the following websites: Armed Forces Legal Assistance Directory: www.aflegalassistance.law.af.mil Army: www.jagcnet.army.mil/legal Navy / Marine Corps: www.jag.navy.mil/legal_services.htm 4Coast Guard: www.uscg.mil/legal/la/Legal_Assistance_Find_Lawyer.asp Each military service has specific regulations regarding the extent of legal assistance they provide. If a legal assistance attorney is unable to resolve the case or a specialized attorney is needed, the legal assistance attorney will refer the servicemember to a civilian attorney, normally through a local lawyer referral service, who can handle the case. Legal assistance offices can help with the following: 1.
Serving as advocate and counsel for an eligible client
2.
Preparing and signing correspondence on behalf of an eligible client
3.
Negotiating with another party or that party’s attorney
4.
Preparing legal documents, as permitted by the JAGMAN
5.
When necessary, will help with referring eligible persons to a civilian lawyer
6.
Drafting powers of attorney
7.
Drafting wills
8.
Estate planning advice
9.
Reviewing contracts and leases (ideally, before you sign)
10. Providing notarization 11. Personal finance advice 12. Family and domestic relations advice (divorce, separation, family support, adoption, custody, paternity and name changes) 13. Consumer affairs 14. Tax advice on real and personal property and income (and in certain locations tax preparation and electronic filing (ELF)) 15. Answering questions about landlord-tenant issues (including leases, security deposits and evictions) 16. Providing advice on immigration and naturalization issues Legal assistance attorneys hold all conversations and dealings with clients in strict confidence, as required by rules of professional responsibility.
SERVICEMEMBERS CIVIL RELIEF ACT (SCRA) · PAGE 2
“ The willingness with which our young people are likely to serve in any war, no matter how justified, shall be directly proportional to how they perceive veterans of early wars were treated and appreciated by our nation.” - George Washington
VETERANS ASSOCIATION OF REAL ESTATE PROFESSIONALS info@VAREP.net
w w w . V A R E P. n e t
951-444-7363