§4021 — Title 50 War and National Defense | U.S. Code

Summary

A servicemember can ask a court, while still in the military or within 180 days after leaving, to delay collection of debts or taxes they owed before or during their service. If the court finds military service seriously hurt the person’s ability to pay, and after giving notice and holding a hearing, the court can grant a delay. For home-purchase loans or mortgages, the court may pause enforcement during service and for a period after service that can be up to the remaining life of the loan plus the time in service (or part of that). Any unpaid principal and interest as of the end of service or the application date must be paid in equal installments over that combined period at the loan’s contract interest rate, and the court can set other fair terms. For other debts, taxes, or assessments, the court may pause enforcement during service and for a period up to the length of the military service (or part of it). Any unpaid principal and interest as of the end of service or the application date must be paid in equal periodic installments during that extended period at the interest rate that would normally apply if payments were made on time, with other fair terms as needed. While the court’s pause is in force and the servicemember follows its terms, no fines or penalties will be added.

Title 50, §4021

War and National Defense — Source: USLM XML via OLRC

(a)A servicemember may, during military service or within 180 days of termination of or release from military service, apply to a court for relief—

(1)from any obligation or liability incurred by the servicemember before the servicemember’s military service; or

(2)from a tax or assessment falling due before or during the servicemember’s military service.

(b)In a case covered by subsection (a), the court may, if the ability of the servicemember to comply with the terms of such obligation or liability or pay such tax or assessment has been materially affected by reason of military service, after appropriate notice and hearing, grant the following relief:

(1)(A)In the case of an obligation payable in installments under a contract for the purchase of real estate, or secured by a mortgage or other instrument in the nature of a mortgage upon real estate, the court may grant a stay of the enforcement of the obligation—

(i)during the servicemember’s period of military service; and

(ii)from the date of termination of or release from military service, or from the date of application if made after termination of or release from military service.

(B)Any stay under this paragraph shall be—

(i)for a period equal to the remaining life of the installment contract or other instrument, plus a period of time equal to the period of military service of the servicemember, or any part of such combined period; and

(ii)subject to payment of the balance of the principal and accumulated interest due and unpaid at the date of termination or release from the applicant’s military service or from the date of application in equal installments during the combined period at the rate of interest on the unpaid balance prescribed in the contract or other instrument evidencing the obligation, and subject to other terms as may be equitable.

(2)(A)In the case of any other obligation, liability, tax, or assessment, the court may grant a stay of enforcement—

(i)during the servicemember’s military service; and

(ii)from the date of termination of or release from military service, or from the date of application if made after termination or release from military service.

(B)Any stay under this paragraph shall be—

(i)for a period of time equal to the period of the servicemember’s military service or any part of such period; and

(ii)subject to payment of the balance of principal and accumulated interest due and unpaid at the date of termination or release from military service, or the date of application, in equal periodic installments during this extended period at the rate of interest as may be prescribed for this obligation, liability, tax, or assessment, if paid when due, and subject to other terms as may be equitable.

(c)When a court grants a stay under this section, a fine or penalty shall not accrue on the obligation, liability, tax, or assessment for the period of compliance with the terms and conditions of the stay.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 591 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Prior Provisions

A prior section 701 of act Oct. 17, 1940, ch. 888, art. VII, as added Pub. L. 92–540, title V, § 504(2), Oct. 24, 1972, 86 Stat. 1098; amended Pub. L. 102–12, § 3, Mar. 18, 1991, 105 Stat. 34, related to power of attorney, prior to the general amendment of this Act by Pub. L. 108–189. See section 4022 of this title. Provisions similar to this section were contained in section 700 of act Oct. 17, 1940, ch. 888, art. VII, as added Oct. 6, 1942, ch. 581, § 18, 56 Stat. 777, prior to the general amendment of this Act by Pub. L. 108–189.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to any case not final before Dec. 19, 2003, see section 3 of Pub. L. 108–189, set out as a note under section 3901 of this title.

§4021 Anticipatory Relief