Understanding The Service Member’s Civil Relief Act

by Hank

This is a guest post by Robert Zangrilli who is the CEO of Franklin Debt Relief.

A 120mm mortar tube firing in AfghanistanJoining the military comes with a variety of benefits. One of the perks for those who are in the military is the Service Member’s Civil Relief Act. This act covers an array of civil protections for members of the military that are entering, deployed, or called to active duty. It was created with the purpose to arrange for civil duties to be suspended until a later time. This allows the service member to have their complete attention on their duties and reduce the number of responsibilities on the family of those who are deployed.

The Ins And Outs Of The Service Member’s Civil Relief Act

This act allows military personnel to be protected against situations such as outstanding credit card debt, mortgages, trials that are pending, income taxes, and lease obligations. This even currently protects service members’ families from facing eviction while they are serving on active duty. The Service Member’s Civil Relief Act covers housing leases that are $2,932.31 or less per month until the member of the military returns from active duty. As for unsecured debts, credit card companies are only allowed to charge up to six percent interest for active members in the military and in addition, any extra interest cannot accumulate while on active duty. Any portion of interest above six percent must be forgiven by the credit card company in compliance with the law.

The Service Member’s Civil Relief Act Helps Families

Another important part of this act is the financial help it offers military personnel’s families. For example, under the act an active duty service member is insured up to $250,000 in the event they are killed while serving their country. This act also prevents service members from being taxed twice if they are married and their spouse works in a state that is not their permanent legal residence. That is, if your spouse is working in another state then that state cannot use your income to determine your spouse’s tax rate.

The Service Member’s Civil Relief Act was passed to make the lives of those who serve our country easier and more financially stable for their families. These families are under constant stress while the head of the household is on duty protecting our country. This act has come to be a valuable asset for military personnel who are trying to maintain a good quality of civil life for their families while attending to their patriotic duty.

Robert Zangrilli is the CEO of Franklin Debt Relief, a lead credit card settlement provider in Chicago, Illinois.

Photo Credit: Flickr – soldiersmediacenter

{ 1 comment… read it below or add one }

Pat S. February 19, 2011 at 3:00 pm

Awesome follow up post to the FINRA results.
Pat

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