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Summary:
Recognizing the special burdens that members of the military may encounter trying to meet their financial obligations while serving their country, in 1940 Congress passed the Soldiers' and Sailors' Civil Relief Act (SSCRA). The law was amended from time to time, ordinarily in response to military operations that required the activation of the Reserves. P.L. 108-189, the Servicemembers Civil Relief Act (SCRA), was enacted on December 19, 2003 as a modernization and restatement of the protections contained in the SSCRA. Much like with the SSCRA, the SCRA has been amended since its initial passage and proposed changes continue to be introduced in Congress. This report summarizes the rights granted to persons serving on active duty in the U.S. Armed Forces under the SCRA. The SCRA provides protections for servicemembers in the event that their military service impedes their ability to meet financial obligations incurred before entry into active military service. Forgiving of all debts or the extinguishment of contractual obligations on behalf of servicemembers who have been called up for active duty are not required, nor is absolute immunity from civil lawsuits provided. Instead, the act suspends civil claims against servicemembers and protects them from default judgments. The SCRA includes provisions that prohibit the eviction of military members and their dependents from rental or mortgaged property; create a cap on interest at 6% on debts incurred prior to an individual entering active duty military service; protect against the cancellation of life insurance or the nonreinstatement of health insurance policies; allow some professionals to suspend malpractice or liability insurance while on active duty; and proscribe taxation in multiple jurisdictions and forced property sales in order to pay overdue taxes. The rights and protections afforded servicemembers under the SCRA continues to draw the attention of Congress. In the 110th Congress, more than 20 bills have been introduced proposing amendments, covering such topics as housing, credit rating, service contracts, educational benefits, jurisdictional concerns, and child custody. Housing, including mortgage and foreclosure protections, and child custody are the two predominant themes of the proposed amendments.
