Skip to content
BOL Conferences Top Gun 23
Thread Options
#1652333 - 01/18/12 07:53 PM SCRA - Availability of Non-Business Assets
dew3896 Offline
New Poster
Joined: May 2007
Posts: 7
Section 706 of the SCRA (50 USC App 596) provides that "If the trade or business (without regard to the form in which such trade or business is carried out) of a servicemember has an obligation or liability for which the servicemember is personally liable, the assets of the servicemember not held in connection with the trade or business may not be available for satisfaction of the obligation or liability during the servicemember’s military service."

Unfortunately, we're having trouble figuring out what this Section means when it says that assets “may not be available” for satisfaction of the obligation. Does anyone have any experience with this? Has anyone encountered a situation where there were assets that may not be available? Have you encountered any circumstances where assets were available? If so, what were they?

Any insights would be appreciated. Thanks.

Return to Top
Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1652367 - 01/18/12 08:11 PM Re: SCRA - Availability of Non-Business Assets dew3896
WI Banker Offline
Gold Star
Joined: Dec 2006
Posts: 253
The bank may not seize, foreclose upon or sell personal assets to satisfy an obligation of debt while a service member is protected under SCRA. The only way around this is with a court order.

Return to Top
#1652418 - 01/18/12 08:44 PM Re: SCRA - Availability of Non-Business Assets dew3896
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,017
Bloomington, IN
IOWs the SCRA protections apply to all pre-active duty loans the servicemember is obligated on, including reducing the rate to 6%.

As WiBanker states before you can begin foreclosure, repossession or seizure actions you must obtain a court order to do so.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1654687 - 01/23/12 10:13 PM Re: SCRA - Availability of Non-Business Assets dew3896
dew3896 Offline
New Poster
Joined: May 2007
Posts: 7
Thanks.

Return to Top

Moderator:  Andy_Z