SSCRA...What It Means To Our Veterans And Our Military Members.

By Doc Schmyz

The Soldier and Sailor Civil Relief Act or SSCRA was signed by President Bush on December 2003. The point for this act was to set legislation to simplify or ease both legal and economic burdens to military personnel whether active or retired.

What is the SSCRA

SSCRA addresses the inability of military men to meet financial obligations when they are in active duty. Financial obligations to include rentals, leases, mortgages, credit card payments and other similar types of transactions. The SSCRA also stretches to cover the dependents of the military men in question under the same guidelines.

SSCRA covers those under active duty, to include out on basic training exercises or assigned in the field. Most veterans fail to pay their financial obligations since they are unable to do so during the line of duty. The SSCRA aims to provide legislation to these individuals so that they are given consideration regarding deadlines and payment due dates.

One area covered by SSCRA for military personnel/dependents includes leasing/renting of a property for residential purpose (not to exceed more than $1,200 a month.) Also the conditions must be met and the transaction must be first be made before the service man is enlisted into active duty.

Once on active duty, it's becomes almost impossible for them to settle this obligation. The next course of action is for the service man to send a request of being under the protection of the SSCRA to the court when he or she receives an eviction notice. If the judge finds sufficient grounds which merits the protection from SSCRA then the court may postpone the eviction until the term of duty of the personnel expires.

Advantage of SSCRA for veterans on active duty

Often military personnel on active duty will not have the ability to fulfill their financial obligations to various institutions like credit cards, banks, insurance or mortgage lenders. The SSCRA was developed to provide a form of security to these men on duty on active duty.

SSCRA will provide enough "elbow room" for military personnel to be given extended deadlines for payments, foreclosures and mortgage transactions when they are in the line of duty. However, not all veterans are given the privilege of being under the protection of the SSCRA; some criteria and requirements must be met for both the transaction and the personnel before they are granted protection.

Interest Rates and SSCRA

Members on active duty who are unable to pay mortgages and who are facing foreclosure may then invoke the protection of the SSCRA to avoid such problems. Qualified debts are those incurred prior to service men coming into the line of duty. Also, the request will only be valid if the personnel are in the line of duty when the request was made which limited them from settling the said obligation.

If qualified, the service member needs to send a letter to the lender/bank requesting that their interest rate be capped to 6% according to the provision stated in SSCRA. Also, they may should send a photocopy of the military order to the lender as proof that they are on military duty as stated in their letter of request.

Foreclosure and the SSCRA

The SSCRA also helps cover the military personnel under the obligation of a mortgage, trust deed or security of property for any financial obligation. The SSCRA simply states that the personnel are valid for protection under the SSCRA if the obligation and the property were done prior to their military service.

The provision states that prohibition of foreclosure or sale of mortgage property without the presence of the borrower, the military personnel in this case, whether in a judicial or a non-judicial foreclosure. It is also stated in the SSCRA that maturity dates and deadlines will be given an extension when the military personnel is in active duty until they are released from their given designation.

Even if the maturity date or the date of foreclosure is extended due to the military personnel's inability to pay, the court will try to achieve a compromise agreement from both parties requiring the mortgage lender to pay at least half of the amount due while the mortgage holder extends the deadline or put a stay on the foreclosure or sale of the property.

About the Author:

Doc Schmyz has worked with investors all over the US. His free website shares Real estate investing information for all over the US. Find real estate information by state

Bankruptcy Filings Increase As Jobs Decrease

By Mallory Megan

Layoffs and pay cuts shifted more people into bankruptcy last year, and experts attest that the situation will most likely not get any better until the unemployment issue improves. In Wisconsin, bankruptcy filings raised to 30 percent in 2009. This came on top of a 35 percent increase in the preceding year.

According to bankruptcy lawyers, not only is it layoffs and firings that are motivation to file. It's the losses of once-regular over time pay and full time status that have left consumers unable to keep up with monthly payments that in the past were not an issue to pay.

U.S. Bankruptcy Court records reveal that there were 27,413 bankruptcy petitions filed in Wisconsin last year. More than 80% were Chapter 7 cases. Chapter 7 cases wipe out medical bills, credit card balances, and other types of debt. Recent Research by The Associated Press illustrated that more than 1.4 million bankruptcies were filed in 2009, an increase of about 32% from 2008.

And despite the fact that bankruptcy takes away the looming debt and offers consumers a fresh financial start, debtors often remain unemployed and are unable to find employment to get a suitableincome again.

Even more discouraging, unless the economy improves enough for industries to start hiring, there virtually no reason to hold the belief that bankruptcies will go down in 2010. Experts have noted that home foreclosures will continue to pile up in 2010 because people who previously had adequate credit have lost employment and cannot keep up with payments.

Bankruptcy may seem like a good option to get a fresh start, but it negatively affects your credit report for ten years, rendering you unable to get a car, place of residence, or employment. Before declaring bankruptcy, it is a wise decision to speak with your creditors and see if some sort of repayment plan can be worked out.

About the Author:

Mallory McGuinness-Hickey works for a debt collection company. Also, she writes articles on bankruptcy, business, finance, and debt collection. Get a totally unique version of this article from our article submission service

Some Loans May Come With Big Tax Benefits

By Henry James

Just about everyone needs to borrow money from time to time and it makes sense to do your research before jumping into a big loan commitment. Did you know that when you take out a loan you could also be reducing the amount of income taxes you have to pay at the end of the year? Surprisingly, not all loans are the same when it comes times to pay your taxes. Many loans may give you a tax credit which shrinks the income tax you owe and other types of loans can give you a tax deduction which reduces your gross taxable income. Here's a simple guide to which loans may give you for a tax deduction, though obviously everyone's tax situation will be different.

Student Loans: The interest you pay on most education loans can only be deducted if you make under a certain amount of money, based on your individual filing status. Did you know that many loans you take out for school could give you a tax advantage? You can, in many cases, deduct the interest you paid on the loan from your federal taxes. Not all school loans are eligible for this, but it's a good way to decrease the taxes you pay, especially if you're a cash-strapped student with a limited income.

Home Mortgages: For many taxpayers their home is the biggest purchase they ever make, and paying a mortgage can actually be a good way to reduce the amount of cash you owe on your income taxes each year. Most home loans are set up so that you can deduct the amount of interest you pay on the loan every year. Out of all the loans that have tax benefits associated with them, house mortgages are probably the most talked about. Since most home loans are designed to be paid over thirty years, that means that purchasing a house can give you 30 years of possible tax deductions.

Home Equity Loans: If your house is more valuable now than when you bought it then you might be able to take out a home equity loan (sometimes called a HELOC) and deduct the interest you pay on that loan. There are some restrictions about how much of your loan's interest actually qualifies for a tax benefit. You can use a home equity loan for a variety of things, you may be able to get additional tax credits by using the money for home improvements. In some case you can even get tax savings for using the money to improve your house's energy efficiency. A home equity loan used to improve your house could eventually increase the value of your dwelling and give you even more equity over time. For many people part of the cost of a home equity loan can be offset with home improvement tax deductions.

Sometimes taking out the right kind of loan can definitely save you thousands of dollars on your income taxes, so it's worth investing a little bit of time to look into what sort of tax deductions you qualify for. There are, of course, a lot of differences between these loans. Everyone will not be eligible for all the different tax deductions that these loans may offer. Sometimes your income, the amount of money you want to borrow and the reason of the loan will limit the amount of money you can deduct from your taxes in any given year. Before you take out any of these loans you may want to speak with your tax professional to make sure the tax benefits apply to your individual situation.

About the Author:

Want to learn more about the details of home loans? Check out our site to learn more about modifying a mortgage, underwater mortgages and the home buyer tax credit extension.