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Bankruptcy May Be Your Option

How does the Servicemembers’ Civil Relief Act affect bankruptcy?

Military service in many instances is the quintessential example of an inherently hazardous occupation. Servicemembers work with an assortment of equipment and materials that are either purpose-designed to be dangerous or lethal, such as weapons and explosives, or work in environmental conditions that pose their own dangers even in peacetime such as working with heavy equipment in in any weather conditions, day or night. Experience has shown that concentration is key to safety and effectiveness of military personnel in the performance of their duties.

The SCRA places restrictions on certain legal actions against military personnel on active duty. In particular, it protects servicemembers from having default judgments entered against them. Although the SCRA was not enacted specifically with personal bankruptcy in mind, its provisions work together with the Federal Rules of Bankruptcy Procedure to extend its protections to bankruptcy court proceedings.


It is beyond the scope of this post to go into detail about all of the particulars of how the SCRA can help you if you or a loved one is in the armed forces, and this post should not be construed as legal advice. But for servicemembers who are contemplating bankruptcy, a bankruptcy law firm can answer questions and provide more detailed information on the protections that this law offers to men and women in uniform.

Experience has also shown that extreme financial or other stress at home degrades the ability of almost anyone to concentrate on job performance, which can become more acute when a member of the armed forces is on active duty and away from home.. Given its interest in having military servicemembers who are able to focus on their mission without being distracted by worries about what is happening while they are on duty, the federal government has a law in place to protect them: the Servicemembers' Civil Relief Act.

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