The Soldiers and Sailors Civil Relief Act
The Soldiers and Sailors Civil Relief Act (SSCRA) was passed in 1940 in order to protect active military personnel and their families from excessive credit card debt. The provisions of the act are not automatically enacted, however. Military personnel must request their afforded protections before they are granted.
If you or someone you know is dealing with financial devastation, you might want to consider filing for bankruptcy. To speak with a qualified attorney about your legal options, contact the West Palm Beach bankruptcy attorneys at the law office of Eric N. Klein and Associates, P.A. Our team of professionals can help you make the best decisions for you and your family. Call us at 561-353-2800 to schedule a free initial consultation.
Provisions of the SSCRA
Under the SSCRA, active military personnel are granted the following protections:
- Reduced interest rates on mortgage payments
- Reduced interest rates on credit card debt
- Protection from eviction if rent is under $1200 a month
- A delay of all civil court actions, such as bankruptcy, foreclosure, and divorce proceedings
Additionally, the SSCRA prohibits creditors from charging military personnel with more than 6% interest on their debts per year while they are active. This includes all debts accumulated before active duty, as well as any new debts accumulated while in service. In order to obtain the 6% interest cap, military personnel must request it in writing. Additionally, they must provide their lender with proof of their status as “active”.
Contact Us
For more information about bankruptcy while in the military, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. by calling 561-353-2800 today.
