How Long Does SCRA Protection Last? Key Timeframes Explained

Military service is an honor that offers numerous benefits. These benefits play a role in why many people choose to enlist. However, military service also comes with significant challenges. To help manage these challenges, several laws and regulations exist to support service members. One of the key protections is the Servicemembers Civil Relief Act (SCRA), formerly known as the Sailors Civil Relief Act.

But how long does the SCRA protect those on active duty? This article will discuss the duration of SCRA protections and how businesses can determine the appropriate timeframe for honoring them.

The Servicemembers Civil Relief Act and its Purpose

The Servicemembers Civil Relief Act was established to help active-duty service members concentrate on their duties by offering certain financial and legal protections. Service members and public health workers are often deployed to various locations, which can be costly.

The SCRA helps eligible individuals manage their financial obligations, allowing them to focus on their service. Although some businesses offer discounts to service members, balancing personal life remains challenging. The SCRA makes their sacrifices more manageable.

SCRA Protections and their Expiration Dates

SCRA protections begin when you start active military service, with some extending beyond your time in the military. So, does protection end after military service? It depends.

Whether in the Air Force or Marine Corps, it’s important to know the expiration date for each protection to avoid complications. If you’re a business dealing with a service member, you can avoid paying thousands of dollars in fines by taking note of when SCRA protections end.

Six Percent Interest Rate Limit

Service members and their spouses are allowed to reduce pre-service debt to a 6% interest rate. Some companies offer even lower interest rates for added convenience. This protection is granted during a servicemember’s military service period and lasts for a year after they leave the military.

It’s important to note that this protection applies only to debt incurred before military service. Hence, the date when the debts were incurred matters when it comes to interest rate reductions.

Protection Against Default Judgments

In judicial and administrative proceedings, a default judgment may not be entered against a service member until an attorney has been assigned to defend the service member’s best interests. A default judgment is issued when a defendant fails to appear at a court hearing.

If the party suing the service member wants to proceed with the proceeding, it must secure an affidavit that states the defendant’s active duty service status. If it can’t determine whether the person is rendering active duty service, the affidavit must explicitly state that.

Civil Court Proceeding Delays

A service member may delay civil court proceedings for up to 90 days if their active duty orders prevent attendance. The court can grant an additional 90-day period of delay if it can be proven that the service member can’t attend because they’re preoccupied with their military unit.

It should be highlighted that this protection only applies to civil proceedings, like divorce or child support cases. It doesn’t apply to criminal proceedings, which means that the nature of the court hearing matters.

Non-Judicial Foreclosure Exemption 

A creditor isn’t permitted to complete non-judicial foreclosures during a military member’s active duty service period and one year after unless the creditor secures a court order allowing them to proceed.

This protection also permits the court to pause the proceeding and adjust the load so the service member can afford it. This can be done at the service member’s request or at the court’s discretion.

Installment Contract and Repossession

A service member cannot have a vehicle or personal belongings repossessed during active duty if they’ve made at least one payment or deposit.

Moreover, the contract must have been signed before the service member entered active duty service. The repossession can only proceed if a court order is secured.

Lease Termination

A service member can terminate a residential lease they or their family occupy without penalties. This protection applies if the lease was signed before that person entered active duty service. It only applies to a service member’s active duty period.

Moreover, the service member must present their deployment orders indicating they’d be stationed elsewhere for at least 90 days. If that service member was deployed suddenly, they could prepare a Power of Attorney for someone else to terminate the lease on their behalf.

Storage Liens Enforcement

If a service member rents a storage unit due to sudden movement or deployment, the storage owner cannot enforce a lien during active duty and for the 90 days afterward. This means their belongings can’t be sold as long as they serve the nation.

The Impact of Active Duty Service

No matter which SCRA protection is activated, a person’s active duty period is crucial to the protection. Most protections apply only during a period’s active duty period, but some of them extend for a few months or a year after that. That is why service members must present evidence of their active duty service.

However, SCRA rights are forfeited if active duty members sign an SCRA waiver, which should be separate from the contract and acknowledged by the service member. Making the waiver a part of the contract is illegal, and businesses should consider this rule to avoid paying penalties.

Obtaining Proof of Military Service

Understanding the validity of SCRA protections is crucial for both service members and businesses. That’s why both parties should obtain proof of military service. This is where SCRACVS can help ensure SCRA rights are honored. Click here to sign up at SCRAVS and verify the active duty status.

FAQs

​​How long does the SCRA last?

Most SCRA protections apply during a person’s active duty, but select SCRA rights extend up to a year after leaving the Armed Forces. That’s why it’s vital to know how long specific protections last.

Which protections exist under the SCRA?

The SCRA offers various benefits, such as interest rate limits, protections against eviction and default judgment, the ability to stay in court proceedings, and the right to terminate contracts without penalties. Select protections also extend to the dependents of service members.

When can you use SCRA?

You can use the SCRA during your active duty period and sometimes up to a year after leaving the Armed Forces. That’s why the date you enter military service is vital to SCRA rights.

What is the deadline for a servicemember to request an interest rate reduction?

You can request a reduction at any time during your active duty period and up to 180 days after being released from the military. That’s why your release date from military duty matters also.