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Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3902. Purpose

The purposes of this Act are—

(1) to provide for, strengthen, and expedite the national defense through protection extended by this Act to servicemembers of the United States to enable such persons to devote their entire energy to the defense needs of the Nation; and

(2) to provide for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of servicemembers during their military service.

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3911. Definitions

For the purposes of this Act:

(1) Servicemember. The term “servicemember” means a member of the uniformed services, as that term is defined in section 101(a)(5) of title 10, United States Code.

(2) Military service. The term “military service” means—

(A) in the case of a servicemember who is a member of the Army, Navy, Air Force, Marine Corps, or Coast Guard—

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3914. Extension of protections to citizens serving with allied forces

A citizen of the United States who is serving with the forces of a nation with which the United States is allied in the prosecution of a war or military action is entitled to the relief and protections provided under this Act if that service with the allied force is similar to military service as defined in this Act. The relief and protections provided to such citizen shall terminate on the date of discharge or release from such service.

[Act of Oct. 17, 1940, c. 888, § 104, as added by Pub. L. No. 108-189, § 1, 117 Stat. 2839 (2003).]

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3916. Information for members of the armed forces and their dependents on rights and protections of the Servicemembers Civil Relief Act

(a) Outreach to members. The Secretary concerned shall provide to each member of the Armed Forces under the jurisdiction of the Secretary pertinent information on the rights and protections available to members and their dependents under the Servicemembers Civil Relief Act [50 U.S.C. app. § et seq.].

(b) Time of provision. The information required to be provided under subsection (a) of this section to a member shall be provided at the following times:

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3917. Extension of rights and protections to reserves ordered to report for military service and to persons ordered to report for induction

(a) Reserves ordered to report for military service. A member of a reserve component who is ordered to report for military service is entitled to the rights and protections of this title and titles II and III [of this Appendix] during the period beginning on the date of the member’s receipt of the order and ending on the date on which the member reports for military service (or, if the order is revoked before the member so reports, or the date on which the order is revoked).

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3918. Waiver of rights pursuant to written agreement

(a) In general. A servicemember may waive any of the rights and protections provided by this Act. Any such waiver that applies to an action listed in subsection (b) of this section is effective only if it is in writing and is executed as an instrument separate from the obligation or liability to which it applies. In the case of a waiver that permits an action described in subsection (b), the waiver is effective only if made pursuant to a written agreement of the parties that is executed during or after the servicemember’s period of military service.

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3919. Exercise of rights under Act not to affect certain future financial transactions

Application by a servicemember for, or receipt by a servicemember of, a stay, postponement, or suspension pursuant to this Act in the payment of a tax, fine, penalty, insurance premium, or other civil obligation or liability of that servicemember shall not itself (without regard to other considerations) provide the basis for any of the following:

(1) A determination by a lender or other person that the servicemember is unable to pay the civil obligation or liability in accordance with its terms.

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3931. Protection of servicemembers against default judgments

(a) Applicability of section. This section applies to any civil action or proceeding, including any child custody proceeding, in which the defendant does not make an appearance.

(b) Affidavit requirement.

(1) Plaintiff to file affidavit. In any action or proceeding covered by this section, the court, before entering judgment for the plaintiff, shall require the plaintiff to file with the court an affidavit—

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3932. Stay of proceedings when servicemember has notice

(a) Applicability of section. This section applies to any civil action or proceeding, including any child custody proceeding, in which the plaintiff or defendant at the time of filing an application under this section—

(1) is in military service or is within 90 days after termination of or release from military service; and

(2) has received notice of the action or proceeding.

(b) Stay of proceedings.

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3933. Fines and penalties under contracts

(a) Prohibition of penalties. When an action for compliance with the terms of a contract is stayed pursuant to this Act, a penalty shall not accrue for failure to comply with the terms of the contract during the period of the stay.

(b) Reduction or waiver of fines or penalties. If a servicemember fails to perform an obligation arising under a contract and a penalty is incurred arising from that nonperformance, a court may reduce or waive the fine or penalty if—

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3936. Statute of limitations

(a) Tolling of statutes of limitation during military service. The period of a servicemember’s military service may not be included in computing any period limited by law, regulation, or order for the bringing of any action or proceeding in a court, or in any board, bureau, commission, department, or other agency of a State (or political subdivision of a State) or the United States by or against the servicemember or the servicemember’s heirs, executors, administrators, or assigns.

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3951. Evictions and distress

(a) Court-ordered eviction.

(1) In general. Except by court order, a landlord (or another person with paramount title) may not—

(A) evict a servicemember, or the dependents of a servicemember, during a period of military service of the servicemember, from premises—

(i) that are occupied or intended to be occupied primarily as a residence; and

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3953. Mortgages and trust deeds

(a) Mortgage as security. This section applies only to an obligation on real or personal property owned by a servicemember that—

(1) originated before the period of the servicemember’s military service and for which the servicemember is still obligated; and

(2) is secured by a mortgage, trust deed, or other security in the nature of a mortgage.

Consumer Bankruptcy Law and Practice: 50 U.S.C. § 3957. Protection of life insurance policy

(a) Assignment of policy protected. If a life insurance policy on the life of a servicemember is assigned before military service to secure the payment of an obligation, the assignee of the policy (except the insurer in connection with a policy loan) may not exercise, during a period of military service of the servicemember or within one year thereafter, any right or option obtained under the assignment without a court order.

(b) Exception. The prohibition in subsection (a) shall not apply—