Frequently Asked Questions about the Soldiers and Sailors Civil Relief Act (SSCRA)
New Law Rewrites Soldiers & Sailors Civil Relief Act (SSCRA)
On 19 December 2003, President Bush signed into law the “Service members Civil Relief Act” (SCRA), revising the
Soldiers’ and Sailors’ Civil Relief Act (SSCRA). The SSCRA provided a number of significant protections to service members.
These include: staying court hearings if military service materially affects service members’ ability to defend their interests; reducing
interest to 6% on pre-service loans and obligations; requiring court action before a service member’s family can be evicted from rental
property for nonpayment of rent if the monthly rent is $1,200 or less; termination of a pre-service residential lease;
and allowing service members to maintain their state of residence for tax purposes despite military relocations to
other states.
The SSCRA was largely unchanged from its enactment in 1940. The new SCRA was written to: clarify the language of the SSCRA: to
incorporate many years of judicial interpretation of the SSCRA; and to update the SSCRA to reflect new developments since 1940. The
new law, SCRA:
(1) Extends the application of a service member’s right to stay execution of judgments, attachments, court hearings and garnishments
against a service member for the period of military service or within 90 days thereafter. It now requires a court or administrative hearing
to grant at least a 90-day stay if requested by the service member. Additional stays can be granted at the discretion of the judge or
hearing official. Authorizes a stay of proceedings while an individual is either in military service or within 90 (formerly, 60) days after
termination or release from such service for a service member who has received notice of such proceedings, if the court receives a letter
or other communication:
(a) stating that current duty requirements materially affect the service member's ability to appear; or
(b) from the service member's commanding officer stating that current duties prevent the service member's appearance and that military
leave is not authorized. Allows a service member granted a stay from such proceedings to apply for an additional stay based on
continuing material effect of military duty on the ability to appear.
Provides certain protections for service members against default judgments while in military service, including a minimum 90-day stay of
proceedings, with respect to the payment of any tax, fine, penalty, insurance premium, or other civil obligation or liability. Requires a court
to appoint an attorney to represent any defendant in military service. Allows a default judgment against a service member to be vacated
or set aside and the case reopened if the service member: (1) was materially affected by such service in making a defense; and (2) has a
meritorious or legal defense to the action or a part thereof.
(2) Clarifies the rules on the 6% interest rate cap on pre-service loans and obligations by specifying that interest in excess of 6% per
year must be forgiven. The absence of such language in the SSCRA had allowed some lenders to argue that interest in excess of 6% is
merely deferred. It also specifies that a service member must request this reduction in writing and include a copy of his/her orders. These
include liabilities incurred by both the service member, or jointly by the service member and his or her spouse, before the service
member entered military service.
(3) Modifies the eviction protection section by precluding evictions from premises occupied by service members or his or her dependents
during a period military service for a premise which the monthly rent does not exceed $2,400.00 for the year 2003 (an increase from the
current $1,200). The Act provides a formula to calculate the rent ceiling for subsequent years.
(4) Extends the right to terminate real property leases to active duty soldiers moving pursuant to permanent change
of station (PCS) orders or deployment orders of at least 90 days. This eliminates the need to request a military
termination clause in leases.
(5) Adds a new provision allowing the termination of automobile leases for use by service members and their dependents. Pre-service
automobile leases may be cancelled if the service member receives orders to active duty for a period of 180 days or more. Automobile
leases entered into while the service member is on active duty may be terminated if the service member receives PCS orders to a
location outside the continental United States or deployment orders for a period of 180 days or more.
(6) Adds a provision that would prevent states from increasing the tax bracket of a nonmilitary spouse who earned income in the state by
adding in the service member’s military income for the limited purpose of determining the nonmilitary spouse’s tax bracket. This practice
has had the effect of increasing the military family’s tax burden.
(7) Adds legal services as a professional service specifically named under the provision that provides for suspension and subsequent
reinstatement of existing professional liability insurance coverage for designated professionals serving on active duty. While the SSCRA
specifically names only health care services, legal services have been covered since 3 May 1999 by Secretary of Defense designations.
The SSCRA permitted such a Secretarial designation, but this revision will clarify this area.
(8) Historically, the SSCRA applied to members of the National Guard only if they were serving in a Title 10 status. The new SCRA adds
to the definition of “military service” active service by members of the National Guard or more than 30 consecutive day. (Effective 6
December 2002, the SSCRA protections were extended to members of the National Guard called to active duty for 30 days or more
pursuant to a contingency mission specified by the President or the Secretary of Defense).
(9) Includes a definition of dependents for purposes of dependent coverage.
New Law Rewrites Soldiers & Sailors Civil Relief Act (SSCRA)
On 19 December 2003, President Bush signed into law the “Service members Civil Relief Act” (SCRA), revising the
Soldiers’ and Sailors’ Civil Relief Act (SSCRA). The SSCRA provided a number of significant protections to service members.
These include: staying court hearings if military service materially affects service members’ ability to defend their interests; reducing
interest to 6% on pre-service loans and obligations; requiring court action before a service member’s family can be evicted from rental
property for nonpayment of rent if the monthly rent is $1,200 or less; termination of a pre-service residential lease;
and allowing service members to maintain their state of residence for tax purposes despite military relocations to
other states.
The SSCRA was largely unchanged from its enactment in 1940. The new SCRA was written to: clarify the language of the SSCRA: to
incorporate many years of judicial interpretation of the SSCRA; and to update the SSCRA to reflect new developments since 1940. The
new law, SCRA:
(1) Extends the application of a service member’s right to stay execution of judgments, attachments, court hearings and garnishments
against a service member for the period of military service or within 90 days thereafter. It now requires a court or administrative hearing
to grant at least a 90-day stay if requested by the service member. Additional stays can be granted at the discretion of the judge or
hearing official. Authorizes a stay of proceedings while an individual is either in military service or within 90 (formerly, 60) days after
termination or release from such service for a service member who has received notice of such proceedings, if the court receives a letter
or other communication:
(a) stating that current duty requirements materially affect the service member's ability to appear; or
(b) from the service member's commanding officer stating that current duties prevent the service member's appearance and that military
leave is not authorized. Allows a service member granted a stay from such proceedings to apply for an additional stay based on
continuing material effect of military duty on the ability to appear.
Provides certain protections for service members against default judgments while in military service, including a minimum 90-day stay of
proceedings, with respect to the payment of any tax, fine, penalty, insurance premium, or other civil obligation or liability. Requires a court
to appoint an attorney to represent any defendant in military service. Allows a default judgment against a service member to be vacated
or set aside and the case reopened if the service member: (1) was materially affected by such service in making a defense; and (2) has a
meritorious or legal defense to the action or a part thereof.
(2) Clarifies the rules on the 6% interest rate cap on pre-service loans and obligations by specifying that interest in excess of 6% per
year must be forgiven. The absence of such language in the SSCRA had allowed some lenders to argue that interest in excess of 6% is
merely deferred. It also specifies that a service member must request this reduction in writing and include a copy of his/her orders. These
include liabilities incurred by both the service member, or jointly by the service member and his or her spouse, before the service
member entered military service.
(3) Modifies the eviction protection section by precluding evictions from premises occupied by service members or his or her dependents
during a period military service for a premise which the monthly rent does not exceed $2,400.00 for the year 2003 (an increase from the
current $1,200). The Act provides a formula to calculate the rent ceiling for subsequent years.
(4) Extends the right to terminate real property leases to active duty soldiers moving pursuant to permanent change
of station (PCS) orders or deployment orders of at least 90 days. This eliminates the need to request a military
termination clause in leases.
(5) Adds a new provision allowing the termination of automobile leases for use by service members and their dependents. Pre-service
automobile leases may be cancelled if the service member receives orders to active duty for a period of 180 days or more. Automobile
leases entered into while the service member is on active duty may be terminated if the service member receives PCS orders to a
location outside the continental United States or deployment orders for a period of 180 days or more.
(6) Adds a provision that would prevent states from increasing the tax bracket of a nonmilitary spouse who earned income in the state by
adding in the service member’s military income for the limited purpose of determining the nonmilitary spouse’s tax bracket. This practice
has had the effect of increasing the military family’s tax burden.
(7) Adds legal services as a professional service specifically named under the provision that provides for suspension and subsequent
reinstatement of existing professional liability insurance coverage for designated professionals serving on active duty. While the SSCRA
specifically names only health care services, legal services have been covered since 3 May 1999 by Secretary of Defense designations.
The SSCRA permitted such a Secretarial designation, but this revision will clarify this area.
(8) Historically, the SSCRA applied to members of the National Guard only if they were serving in a Title 10 status. The new SCRA adds
to the definition of “military service” active service by members of the National Guard or more than 30 consecutive day. (Effective 6
December 2002, the SSCRA protections were extended to members of the National Guard called to active duty for 30 days or more
pursuant to a contingency mission specified by the President or the Secretary of Defense).
(9) Includes a definition of dependents for purposes of dependent coverage.
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should not be taken as legal advice always consult an attorney before making any legal decisions
should not be taken as legal advice always consult an attorney before making any legal decisions
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Your Attorney Military or Civilian?
Article 15 Maximum Punishment
Adoption by Military Personnel
Adoption in Korea
Advance Medical Directives
Applying for Citizenship
Army Family Support Requirements
Credit Report Disputes
Divorce and Separation
Getting Sued
How do I make someone my dependent
Identity theft
Immigrant Visa for Military Spouse
Paternity
Power of Attorney
Residency
SGLI
TSGLI
Your Attorney Military or Civilian?