Military members facing bankruptcy are entitled to certain protections via the Servicemembers’ Civil Relief Act. The Act strengthens national defenses by giving military members Bankruptcy Help in St. Charles MO, and its provisions will be explained below in greater detail.
The Civil Relief Act
The Servicemembers’ Civil Relief Act (SCRA) provides for the short-term suspension of administrative and judicial proceedings that can negatively impact a servicemember while they’re defending the country. Among other provisions, the SCRA allows for reduced interest on obligations obtained before service started, and it limits judgments against servicemembers and dependents.
The SCRA applies to all active-duty military personnel, and its provisions usually end when a person is discharged or within 90 days. Parts of the SCRA apply to military reservists, and those who’ve received orders but have not yet reported for induction or active duty.
Bankruptcy and the SCRA
The SCRA states that it applies to any proceeding in any court; therefore it applies in bankruptcy actions. The default judgment portion of the SCRA applies in these cases as well. The SCRA protects against the entry of such a judgment, and it allows for Bankruptcy Help in St. Charles MO when the military member knows of the proceeding. It also allows a vacation or stay of attachments, judgments and garnishments. Certain procedures must be adhered to so that the servicemember is protected, and courts may make further judgments to protect the defendant’s rights under the SCRA. Click here to find out more.
Protection From Eviction Under the SCRA
The SCRA prevents landlords from evicting servicemembers and their families from a residence in the absence of a court order. In an eviction, the court can adjust a lease to protect parties’ interests. If the eviction stays, it can provide relief to a landlord by garnishing the servicemember’s paycheck. With the SCRA, a military member can terminate a lease if they’re transferred after signing.
Serving in the military can be difficult, as most servicemembers leave the family at home. The SCRA is intended to give military personnel Bankruptcy Help in St. Charles MO by protecting their legal rights and their finances while they’re defending the country. A bankruptcy lawyer with the Law Offices of Steven K. Brown can tell their client more about the SCRA, and about their rights under the Act.
