Many things await the military at home, including debts that were not paid before entering the military. As a military man, he has some rights regarding debts that he should be aware of. If collectors have been calling him nonstop since he got home from work, here’s what he can do about it.
It’s about time
To be eligible for any debt relief, you must have been on active duty from the time you borrowed money. What does that mean? If you borrowed money before joining the military, you are eligible for the ‘Soldiers and Sailors Civil Relief Act’.
The details of this law are complicated and will require you to hire a qualified attorney to determine how this law applies to you, but these are the general details.
* In short you must first review your debt.
* If a court finds that you did, in fact, enter active duty since you borrowed money, a few things can happen:
1. Collectors are limited in how they can collect the debt from you.
2. Generally, repossessions, evictions, and foreclosures do not apply to you.
3. The Fair Debt Collection Act may apply, but it only applies to personal debt (credit cards, car loans, mortgages, etc.)
* Keep in mind that debt collectors may contact people you know. However, they can only try to get address information from those people. Collectors may not discuss your debts with any third party, or leave a message about your debt on a public answering machine.
Wage bill
Keep in mind that this information is a general overview and 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 payment from the military; furthermore, debt collectors cannot garnish any wages without first seeking a court 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. There may be additional wage garnishment exemptions if you are a member of the military, but it is difficult to determine whether or not these exemptions apply to you unless an attorney listens to your individual case.
Basic steps to follow
It’s not uncommon for a debt collector to know when a military member has returned from active duty, so don’t be surprised if debt collection calls start when you return. Since it’s the last thing you need after a long period of service, keep these basic steps in mind when debt collectors call.
* Do not make any type of agreement without consulting a lawyer
* Don’t start paying off a debt unless you know you haven’t passed a statute of limitations in your state (every state is unique).
* Do not provide your bank account or other personal financial information.
* If a debt collector attempts to contact a third party to discuss your debt, be sure to call an attorney immediately.