Soldiers' and Sailors' Civil Relief Act of 1940--for the newbies

Any debt that the soldier has incurred before going active duty she/he can use the act.
 
Under the provisions of the Soldiers' and Sailors' Civil Relief Act of 1940, you may qualify for any or all of the following:

• Reduced interest rate on mortgage payments.
• Reduced interest rate on credit card debt.
• Protection from eviction if your rent is $1,200 or less.
• Delay of all civil court actions, such as bankruptcy, foreclosure or divorce proceedings.

"Although all service members receive some protections under the SSCRA, additional protections are available to reserve components called to active duty," said Lt. Col. Patrick Lindemann, deputy director for legal policy in the Office of the Undersecretary of Defense for Personnel and Readiness. Most active duty service members are familiar with the provisions of the SSCRA that guarantee service members the right to vote in the state of their home of record and protect them from paying taxes in two different states.

One of the most significant provisions under the act limits the amount of interest that may be collected on debts of persons in military service to 6 percent per year during the period of military service. This provision applies to all debts incurred prior to the commencement of active duty and includes interest on credit card debt, mortgages, car loans and other debts. The provision, Lindemann emphasized, applies to pre-service debts, and the interest rate reduction doesn't occur automatically — service members must request it.