In the Armed Services? The Servicemembers Civil Relief Act May Help You Avoid Bankruptcy! (Part Four)
By Kevin Gipson, New Orleans Bankruptcy Attorney on Apr 2, 2007 in General Bankruptcy Information, Louisiana
In this final part of our discussion of the Servicemembers Civil Relief Act (SCRA) we will discuss how a member of the armed services can use the SCRA to terminate leases and to avoid eviction.
The SCRA prevents a landlord from evicting a servicemember or the dependents of a servicemember without first obtaining a court order when the monthly rent does not exceed $2,400.00. (This amount of the lease can vary and the SCRA provides a formula to determine the amount. The $2,400.00 amount was the amount at the time the SCRA was enacted in 2003).
However, the servicemember has the right to terminate the lease if the servicemember receives orders for a permanent change of station of for deployment for a period of 90 days or more.
The SCRA also applies to automobile leases.
A servicemember may cancel a pre-service lease if he receives orders for active duty for a period of 180 days or more. If the servicemember enters into the lease while on active duty, the he can only cancel the lease if he receives a permanent change of station outside of the continental United States or deployment orders for a period of 180 days or more.
As can be seen from this series of articles, a member of the armed services called to active duty has many forms of relief available which may help the servicemember avoid bankruptcy.
An experienced consumer bankruptcy attorney can advise you if the SCRA can be of help to you or whether you need to consider bankruptcy relief.
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