Know your rights under the SCRA Published June 12, 2008 By Staff Sgt. Natasha Crumpton 4th Fighter Wing Legal Office SEYMOUR JOHNSON AIR FORCE BASE, N.C. -- Do you know about the Servicemembers Civil Relief Act and the benefits you are entitled to as a military member? The SCRA protects military members serving on active duty from adverse consequences to their legal rights that may result from such service. On December 19, 2003, President George W. Bush signed into law the SCRA. It is a comprehensive restatement of the Soldier's and Sailors' Civil Relief Act of 1940. The SCRA clarifies and strengthens the rights and protections it provides members in the military. The SCRA's coverage includes servicemember's financial obligations and liabilities, such as rent, installment contracts and leases, civil (but not criminal) legal proceedings, life insurance and taxes. Some SCRA protections also apply to reservists and guardsmen called to serve on active duty. Other protections apply to members who are just entering active duty and members who have always been on active duty. Military dependents including spouse, children and those who receive more than one-half of their support from a military sponsor are also covered under the SCRA. You must take action either before or during your activation within 30 to 180 days after completing an active duty assignment. You, a person you've delegated the ability to exercise your rights under a Power of Attorney, or an attorney may assert your rights. You may also contact any military legal office with any questions. Listed below are a few questions and answers regarding the benefits and protections you are afforded as a military member: Automatic Stay of Administrative and Court Proceedings Q: Are you involved in an administrative proceeding of any kind or a civil court case you wish to postpone while serving on active duty or within 90 days after completing a deployment? A: If so, the SCRA provides for an automatic, non-discretionary. 90-day stay of civil proceedings upon application of the servicemember. The servicemember must demonstrate there is a material effect and provide the court a date when he or she will be available. Right to Terminate Automobile Lease Q: Do you want to terminate an automobile lease that was entered into before being called to active duty for a period of 180 days or more, receiving orders for a PCS outside the U.S. or from a state outside CONUS to another state, or deploying with a military unit for 180 days or more? A: If so, you have the right to terminate your automobile lease. The member must provide written termination to the leaser and return the vehicle within 15 days of the notice. Right to Terminate Residential Lease Q: Do you want to terminate a rental lease that was entered into before being called to active duty, receiving orders for a PCS, deploying with a military unit for 90 days or more or separating or retiring from the military? A: If so, you have the right to terminate your residential lease by providing 30 days written notice to the leaser. Protection Against Eviction Q: Are you or your dependents being threatened with an eviction while serving on active duty? A: If this is your primary residence, where by lease, you pay $2,400 or less a month, you cannot be evicted without court order. Upon application by a landlord for an eviction order, the court shall stay the proceedings for 90 days, if requested by or on behalf of the servicemember, whose ability to pay the agreed rent is materially affected by military service, unless in the opinion of the court, justice and equity require a longer or shorter period of time. Installment Contracts Q: Is a creditor threatening to terminate an installment contract for the purchase, lease or bailment of real or personal property, such as an automobile, you entered into before serving on active duty? A: If so, motor vehicles fall within the umbrella of installment contract protections. If a military member falls behind in car payments, the leaser must obtain order before repossessing the vehicle. Insurance Q: Are you having difficulty paying private professional, health or life insurance premiums, or has your insurance terminated while on active duty? A: If so, the level of coverage of life insurance for protection against the lapse of life insurance policies when a military member enters into service or deploys is increased from $10,000 to $250,000 or the SGLI maximum the member currently has, whichever is greater. Interest Rates Q: Are you paying an interest rate of more than six percent on purchases you made before serving on active duty, including credit cards and mortgages but not student loans? A: If so, there is a six percent interest rate cap on obligations or liabilities incurred before military service. This results in a reduction of monthly payments and any excess interest of six percent is forgiven. Income Taxes Q: Are you having difficulty paying income taxes while on active duty? Are you paying state taxes based on your military income or other property, such as a car, to a state other than your home of legal residency? A: The collection of income taxes is deferred for 180 days after return from deployment, termination or release from military service. No penalty or interest is accrued during the deferment period. The servicemember must notify the IRS and state department of revenue that they are unable to pay due to military service. A state may not use the non-resident military members pay to increase the tax liability imposed on other income earned by the non-resident member or spouse. This is known as the Kansas Rule or California Method and excludes the earned income of the non-resident military member from other earned income by the member or their spouse. Please refer to your state of legal residence's department of revenue or the IRS for more information. For more information or questions regarding your legal rights under the SCRA, call 722-5311.