Many things await members of the military at home, including debts that were not paid before entering the military. As a member of the military, you have some rights regarding debt that you should be aware of. If debt collectors are calling you nonstop since you’ve returned from service, here’s what you can do about it.
It’s all about time
To be eligible for any debt relief, you must have entered active duty from the time you borrowed money. What does that mean? If you borrowed money before enrolling in the military, you are eligible for the ‘Soldiers and Sailors Civil Aid Act’.
The details of this law are intricate and will require you to retain a qualified attorney to determine how this law applies to you, but here are the general details.
* A brief must first review your debt.
* If a court finds that you have, in fact, entered active duty since you borrowed money, a few things can happen:
1. Collectors are limited in how they can collect your debts from you.
2. Generally, repossessions, evictions, and foreclosures cannot apply to you.
3. The Fair Debt Collection Act may apply, but it only applies to personal debts (credit cards, auto loans, mortgages, etc.)
* Please note that debt collectors may contact people you know. However, they can only try to get information about the address of those people. Collectors cannot discuss your debts with third parties or leave a message about your debt on a public answering machine.
Wage bill
Please note that this information is a general description and that each state has its own rules, so you will need to speak with an attorney about your specific case. That said, military pay is generally exempt from wage garnishment. This means that most debt collectors cannot garnish your pay from the military; Additionally, debt collectors cannot garnish any wages without first requesting a short order. In most states, any debt collector who threatens to garnish wages is not acting in accordance with the law.
The only exemption to the garnishment rule (in most cases) belongs to the IRS. The IRS does not need a court order to garnish wages, but again, this depends on your particular case. Additional wage garnishment exemptions may exist if you are a member of the military, but it is difficult to determine if these exemptions apply to you unless an attorney hears your individual case.
Basic steps to follow
It is not uncommon for a debt collector to know when a member of the military has returned from active duty, so don’t be surprised if debt collection calls begin when you return. Since it is the last thing you need after a long period of service, keep these basic steps in mind when calling your debt collectors.
* Do not make any kind of agreement without consulting a lawyer
* Don’t start paying off debt unless you know a statute of limitations has not been passed in your state (each state is unique).
* Do not reveal your bank account or other personal financial information.
* If a debt collector tries to contact a third party to discuss your debt, be sure to call an attorney immediately.
