Bad Credit Debt Relief

Wauwatosa Bankruptcy Advocates Help Navigate The Servicemember Civil Relief Act

In 1940, the Soldiers’ and Sailors’ Civil Relief Act of 1940 was signed into law. To quote from the Act itself, it was designed to “protect those who have been obliged to drop their own affairs to take up the burdens of the nation.” It grants certain “stays” on civil proceedings to members of the active military so that they can focus their full attention on the defense of the nation. The Act changed little until some revision after Operation Desert Storm. But, in December of 2003, a newly updated piece of legislation was signed into law and outlined The Servicemember’s Civil Relief Act (SCRA). This revised document updated and expanded many of the provisions of the 1940 act to adjust for changes in the American way of life since World War II. Wauwatosa bankruptcy attorneys have represented many military families in these matters.

This new Act provided new and added relief for active duty personnel in several areas. Among them:
Default Judgments
If a servicemember fails to appear in an action filed by a plaintiff, the plaintiff must file an affidavit with the court before a default judgment may be entered. In this affidavit, the plaintiff must state whether or not the defendant is in the military. If so, the court could appoint legal counsel for the absent servicemember and grant a stay of proceeding of up to 90 days if the servicemember cannot be present to defend his or her self or if the counsel appointed cannot locate the servicemember. However, if Wauwatosa bankruptcy advocates are the legal counsel, they can speak for the servicemember.

Stay of proceedings
Any one covered by the SCRA may request a stay of proceeding for up to 90 days on any civil action filed. The court will grant the stay if the servicemember can provide proof that his or her military duty prevents them from appearing in court and proof from his or her commanding officer that their military duty prevents them from appearing as summoned and that leave for this appearance is not approved.

Delay of executions
Upon application from the servicemember or upon its own motion, the court must stay any judgment entered against a servicemember or any attachments or garnishment of a servicemember’s wages or property if it finds that the servicemember’s ability to cooperate with these rulings is affected by their military service. This stay is in effect for the length of the servicemember’s enlistment period plus 90 days. However, the court can order the servicemember to make installment payments on any monies owed during this time.

Evictions, Leases and Interest Rates
The SCRA also provides much needed assistance with evictions. Under the new guidelines, landlords trying to evict servicemembers or their immediate families cannot do so without a court order. The court may then alter the lease agreement to benefit both parties. This benefits financially troubled servicemembers overseas with families left behind in the States.

Also, interest rates on pre-service debts are capped at 6%. The Act also offers that leases for servicemembers and their families, including auto leases, may be cancelled if the servicemember is transferred or deployed.

This act does not dismiss any civil proceedings, but merely delays them until an active duty servicemember is no longer financially hindered by military service. The provisions of the SCRA also do not extend to criminal proceedings and are only designed to mitigate civil actions. Contact bankruptcy advocates in Wauwatosa for more information on these special provisions.