What the Servicemembers Civil Relief Act covers — and how to use it.
The Servicemembers Civil Relief Act, commonly called the SCRA, is a federal law that recognizes that going on active duty military service affects your ability to meet financial obligations you had before you entered service. It does not forgive your debts — it protects you from the worst consequences of falling behind while you are serving, and in some cases reduces what you owe. Most SCRA protections apply to obligations you took on before going on active duty. Debts taken on after active duty begins are generally not covered.
This page covers the full range of financial and legal protections the Servicemembers Civil Relief Act provides to active duty service members and their families — not just mortgage help, but protections that apply to car loans, credit cards, student loans, leases, civil court proceedings, insurance, and more. For housing assistance programs specifically available to military families beyond these legal protections, see the page on military homeowners assistance programs.
Who is Covered by SCRA - Note it is Not Always Automatic
The SCRA covers active duty members of the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard. It also covers National Guard members who have been called to federal active duty for more than 30 consecutive days, active duty commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration, and in some cases their dependents. Reservists called up under federal orders are also covered. It does not cover Guard members on state orders or veterans who have already left service.
One important note: most SCRA protections are not automatic. You have to notify the lender, landlord, or other party and in most cases provide a copy of your military orders. Do not assume protections are in place if you have not asked for them.
Interest Rate Cap on Pre-Service Debt
If you have loans or debt you took out before going on active duty — mortgages, car loans, credit cards, student loans, personal loans, or other installment debt — you can request that the interest rate be reduced to no more than 6% per year for the entire time you are on active duty. For mortgages, the 6% cap continues for one full year after you leave active duty. For most other types of debt, it ends when active duty ends.
The portion of interest above 6% is permanently forgiven. Your lender cannot add it back later or charge you for it after service ends. Your monthly payment must also be reduced to reflect the lower rate — the lender cannot just keep your payment the same and apply the difference to principal.
To get this protection, send your lender a written request and include a copy of your military orders. You have until 180 days after leaving active duty to make the request, though it makes sense to do it as early as possible since the protection only applies going forward from when the lender receives notice. If your lender refuses to honor the reduction, contact your nearest military legal assistance office or file a complaint with the Consumer Financial Protection Bureau at 1-855-411-2372. There isn’t one single “main all-in-one” legal aid website for the military, the closest thing to a central hub is https://www.militaryonesource.mil/financial-legal/legal/.
Foreclosure Protection
If you took out a mortgage before going on active duty, your lender cannot foreclose on your home without first getting a court order, even if you are behind on payments. This protection lasts for your entire period of active duty service and for 12 months after you leave. It applies automatically — you do not need to have told your lender about your military status for it to apply.
In a court proceeding, a judge can pause or block the foreclosure or order the loan terms adjusted. Because the lender has to involve a court, this gives you time and a legal forum to address the situation rather than simply losing your home.
If a lender proceeds with foreclosure without a court order while you are on active duty, that foreclosure is invalid. Lenders who knowingly violate this provision can face criminal penalties. If you believe your SCRA foreclosure rights are being violated, contact your military legal assistance office immediately.
Vehicle and Personal Property Repossession
A lender cannot repossess your car or other personal property for nonpayment without a court order while you are on active duty, provided you made at least one payment before going on active duty and the debt was taken on before active duty began. This applies to car loans and other secured installment loans.
Like the foreclosure protection, this does not mean you can stop paying and face no consequences — the debt still exists and missed payments can affect your credit. But the lender cannot physically take the property without going through a court.
Civil Court Proceedings and Default Judgments
If you are sued while on active duty and cannot appear in court because of your military service, the court must appoint an attorney to represent you before entering a judgment against you. The court can also pause the case — called a stay of proceedings — for at least 90 days, and sometimes longer.
This means a civil lawsuit, whether for debt collection, a contract dispute, child custody, or other matters, cannot simply proceed to a judgment against you while you are overseas or otherwise unable to participate. You or an attorney can request a stay by showing that your service is preventing you from appearing.
Lease Termination
If you signed a residential lease before receiving deployment or PCS orders and you are being sent to a new location for at least 90 days, you have the right to terminate the lease without a penalty or early termination fee. The same applies if you signed a lease while on active duty and then receive qualifying orders. You need to provide written notice to the landlord along with a copy of your orders. The termination takes effect 30 days after the next rent payment is due following your notice.
This is a particularly important protection for military families who rent. Civilian landlords are not permitted to charge lease-break fees or withhold deposits based on a military lease termination under the SCRA.
Vehicle Lease Termination
If you signed a vehicle lease before going on active duty and are called up for at least 180 days, you can terminate the vehicle lease without early termination fees. If you signed the lease while already on active duty and then receive deployment or PCS orders to a location that does not support the vehicle (for example, overseas orders where you cannot bring your car), you can also terminate without penalty. Written notice and a copy of orders are required.
Cell Phone Contract Termination
If you receive military orders to relocate for at least 90 days to a location that does not support your cell phone service, you can terminate your cell phone contract without early termination fees. The same applies if you are deployed to a location that does not support your carrier's coverage. Provide written notice to the carrier along with a copy of your orders.
Life and Health Insurance Protections
Life insurance companies cannot cancel or lapse a policy because of your military service, and cannot charge higher premiums based on military risk. If you cannot afford premiums during service, your coverage is protected against lapse, and you have up to two years after leaving service to reinstate a policy that was in effect before you went on active duty.
If you had employer-sponsored health insurance that ended when you left for active duty, you are entitled to reinstate that coverage within 90 days of returning from service. TRICARE covers most active duty service members and their families during service, but if you are returning to civilian employment and had prior coverage, the SCRA protects your ability to re-enroll without waiting periods or exclusions for pre-existing conditions related to your military service.
Storage Liens
A storage facility cannot foreclose on a lien against property you have in storage while you are on active duty or for 90 days after leaving service. If you are paying for a storage unit and fall behind while deployed, the company cannot auction your belongings during that period.
Income Tax Deferral
If your ability to pay income taxes is materially affected by your military service, you can defer federal and state income taxes that were due before or during active duty. No interest or penalty accrues during the deferral period. The deferral ends 180 days after you leave active duty. This applies to federal income taxes and most state income taxes, but not to Social Security or Medicare taxes.
Getting Help
Military legal assistance offices on installations provide free legal advice on SCRA rights and can help you draft letters, review documents, and take action if a lender or landlord is not complying. You can find your nearest legal assistance office at https://legalassistance.law.af.mil/.
Military OneSource also provides free legal and financial counseling to service members and their families at https://www.militaryonesource.mil/ or by calling 1-800-342-9647.
If a lender, landlord, or other company is not honoring your SCRA rights, you can file a complaint with the Consumer Financial Protection Bureau at https://www.consumerfinance.gov/complaint/ or by calling 1-855-411-2372. The Department of Justice also enforces SCRA violations and can be reached at 1-800-896-7743.
This page provides general information about Servicemembers Civil Relief Act protections. The details of how SCRA applies to any specific situation can be complicated. If you have questions about your individual circumstances, contact a military legal assistance office or a qualified attorney for guidance.
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