Legal Landscape

The Servicemembers' Civil Relief Act provides a virtual constellation of legal rights to those in uniform; so, a basic understanding of the SCRA can help you avoid serious legal complications. The last installment of Legal Landscape (Belvoir Eagle, Aug. 7) detailed provisions of the SCRA for lease and mortgage protections, eviction protections, interest rate caps and delaying hearings and proceedings.
In this installment, we will cover protections for default judgments, installment contracts, taxes and other types of relief.

Preventing And Reopening Default Judgments
Those who file civil legal or administrative actions must file sworn statements in court indicating whether the person being sued is in the military service.
If the defendant does not respond to the lawsuit, but the evidence suggests that the defendant is on active duty, the court must appoint an attorney to represent the military defendant's interests before entering a default judgment.
If a default judgment is entered in a proceeding during your military service, or within 60 days after you exit the military service, you may attempt to reopen the judgment. To do so, your military service must have materially disadvantaged your ability to make a defense, you must have a meritorious defense in the case, and you must file to reopen the judgment within 90 days after leaving military service.
Of course, if you get actual notice of the default proceedings, you can request a stay from the court under the above section.

Pre-service Installment Contracts
If you have made a deposit or installment on a contract for the purchase or lease of real or personal property before entering active duty, your contract cannot be terminated or property repossessed for nonpayment or breach before or during your military service without a court order.

Taxes
If you are serving and currently living within a state in accordance with military orders, certain rules apply:
• Your residence and domicile for tax purposes is unaffected by your service.
• Your military compensation is not "income" for tax purposes in that state if you are a
non-resident.
• Your personal property is not subject to state taxation if you are a non-resident.
• The state in which your spouse or you are non-residents cannot use your military compensation to increase your tax liability.
Upon your request, the Internal Revenue Service, state, and local taxing authorities may grant a deferral of income taxes due before or during your military service, for not more than 180 days after your release from military service. No interest or penalty may be added as a result of such a deferral.
Your property cannot be sold or foreclosed to satisfy your unpaid taxes, except by court order, only if a court determines your military service did not materially affect your ability to pay the taxes. Courts can stay proceedings to enforce tax collection, assessment, or tax-related property sales, during your military service and for not more than 180 days after your release from military service. Penalties for non-payment are capped at six percent per year.

Other Relief
You can apply for relief on other matters by filing for relief with a court during your military service or no later than within 180 days of release from military service.
This information represents a brief summary of the SCRA, and does not address all areas that might be covered by this area of the law. The SCRA provides many other protections not mentioned here.
Contact your Fort Belvoir Legal Assistance Office with any questions you might have at 703-805-2856.