Bankruptcy vs debt consolidation, which one is right for your current debt problems?

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 termed The Service member’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 lawyers 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 service member 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 may 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 lawyers 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 duration 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 seeking 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 provides that leases for servicemembers and their families, including auto leases, may be canceled 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 impaired by military service. The provisions of the SCRA also do not extend to criminal proceedings and are only designed to mitigate civil actions. Wauwatosa bankruptcy lawyers can provide you with more information on these special provisions.

About the Author:

When faced with overwhelming debt and the possibility of bankruptcy, Wauwatosa bankruptcy lawyers can help get your financial situation back under control.

Nick Messe | Bankruptcy Basics |

Tags: bankruptcy lawyer

A Free Gift For You!

As a way of saying "Thank You" for visiting this site here's a free gift for you. This money saving eBook is worth $17.

About this eBook: Are you wasting money? Chances are there are ways that you can easily cut back on your unnecessary spending and you won't even notice a difference. Simply learning about these techniques is the first step to making changes to your finances. We asked money experts what their best tips are for trimming the fat from the average person's budget and here are their suggestions. Click here to download this free eBook. This is a time limited offer and the download link can be taken away without notice. No sign-up form to fill-up, no email address to give, just plain free download!

You might also like to read these recommended articles

• Cincinnati Bankruptcy Lawyer Keeping Busy in This Economy
  Many individuals sitting in a Cincinnati bankruptcy lawyer's office are in shock. They never expected to find themselves in such a financial situation. It is comforting to know that you are not alone.
  
  
• Cleveland Bankruptcy Lawyer Sees Tremendous Growth in First Time Filers
  The economic storm is getting worse, and Ohio has been very hard hit. Any Cleveland bankruptcy lawyer will attest to the fact that theirs is the one business that has seen tremendous growth over the past year. Not a good sign.
  
  
• How to Choose a Bankruptcy Attorney
  Too much debt and too little money, can sometimes lead to bankruptcy. If you find yourself in this situation then the next inevitable step may be to file for bankruptcy. But before you take on this difficult task, it is important to secure an experienced bankrupcy attorney. Filing bankruptcy is a lengthy process that requires somewhat complicated paperwork. Having a legal professional on your side can help ease you through the bankruptcy process.