Expert: Cynthia Bedell - 9/7/2008

Question
QUESTION: Hi,

I was curious if the Soldier and Sailor Relief Act applies to reservists only or to volunteers onto duty too?


Thank You

ANSWER: Dear Tim --

The Soldiers and Sailors Relief Act applies in various ways depending on what aspect of the act you wish to invoke.  Some of it applies to all service members, but some applies only to activated reservists and National Guard members.

For debt relief, it applies only to that debt acquired prior to an activation.

For other issues the timing of the contract in question and the entry onto active duty or reserve or National Guard activation play a large role.  

Congress made numerous changes to the law earlier this year that will assist National Guard and reservist business owners keep their businesses during their active duty service.  

Please write back with specifics, if you have a situation about which you would like more information.







---------- FOLLOW-UP ----------

QUESTION: How about debt relief prior to enlistment? Will it cover debt if you voluntarily enlist?

Answer
Dear Tim --

Unfortunately, in most cases, you are not relieved of legal debts entered into before you enlist.

If it is a college loan, and you have earned a degree, the military can pay off those loans in lieu of an enlistment bonus.

Depending on the size of the loan, you could possibly earn an enlistment bonus, and pay your debt over time.  Also as an enlistee, you could renegotiate your loans to allow you to pay them off more slowly at a lower interest rate.  This is one of the features of the new bill, that creditors cannot charge you excessive interest rates while you are serving the country in the military.

Again, feel free to write back, if you have specifics you would like to discuss.