The Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act was created in 2003 as an expansion of the Soldiers and Sailors Civil Relief Act of 1940. The act provides further protection for actively deployed military personnel and their families. The purpose of this act is to reduce financial stress on families who have an active service member stationed abroad.
If you or someone you know is struggling with financial hardships, you may want to consider filing for bankruptcy. The West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A., can help you determine your legal options. Contact us today at 561-353-2800 today to schedule a free initial consultation.
Protections Offered by the SCRA
The SCRA extends the protections afforded to active military personnel by the SSCRA. The following protections are granted by the SCRA:
- Previously, the SSCRA prevented military personnel from being evicted if their rent was less than $1,200 per month. The SCRA raised this rent limit to $2,932.31 per month – and then adjusts to account for inflation.
- Clarifies the protection against high interest rates. No creditors may charge actively deployed military personnel more than 6% interest. Additionally, they cannot raise it above 6% once they return. Any lost interest payments must be permanently forgiven.
- If changing locations, military families/personnel have 90 days to notify their landlord of relocation without facing penalty.
- Prevents service members from double taxation
- Increases the maximum amount of federal protection from $10,000 to $250,000
The SCRA protects all active duty servicemembers, reservists, and members of the National Guard who are on active duty. Protections last between 30 and 90 days after the date of discharge from active duty.
Contact Us
For more information about the SCRA or your bankruptcy options, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800 today.
