Wisconsin SCRA Benefits: State-Duty 6% Cap & Defaults
Part of: The Complete Guide to the SCRA
Wisconsin did not import the whole federal SCRA by reference the way some states do. It picked the two protections a Guard member reaches for first, the rate cap and the default-judgment shield, and wrote them directly into the military code for state active duty. The result is just as usable.
What Wisconsin wrote into its military code
| Protection | Federal SCRA | Wisconsin |
|---|---|---|
| Guard on state active duty (30+ days) | ✕ Not covered | ✓ Covered (Wis. Stat. § 321.62) |
| 6% interest rate cap on pre-duty debt | ✓ | ✓ Wis. Stat. § 321.62 |
| Default-judgment protection | ✓ | ✓ Affidavit plus appointed counsel |
| Lease exit, foreclosure shields | ✓ On federal orders | Federal floor on federal orders |
| State income tax on the duty-station election | Depends on state | Has an income tax; elect your home state |
The 6% cap, written into state law
Section 321.62 carries the federal ceiling onto state orders. A pre-duty obligation that charges more than 6 percent cannot charge a state-active-duty member more than 6 percent except by court order, and like the federal statute it counts service charges and fees, not just the headline rate, toward that cap. Run the same rate-cap play you would use federally, with the letter generator, and point to 321.62.
The courtroom shield
The other half of 321.62 protects you from losing a case by not showing up. A plaintiff seeking a default judgment must swear you are not in state active duty, and if you are, the court must appoint an attorney before it can enter judgment against you. That is the federal default-judgment protection, available on Wisconsin state orders. On federal orders, the full federal kit, including the lease exit and foreclosure shields, applies on top.
The tax side is ordinary: Wisconsin taxes income, so a nonresident makes the standard duty-station election.
Run the Wisconsin stack
- WI Guard on state active duty 30+ days: send written notice on pre-duty debt and invoke the 6% cap under Wis. Stat. § 321.62 (letter generator).
- Sued or served while activated: make sure the court has the affidavit requirement, and demand appointed counsel before any default judgment under 321.62.
- On federal orders, run the full federal kit: 6% cap, lease exit, and foreclosure shields.
- Confirm your orders cross the 30-day threshold before relying on the state cap.
- Stationed in Wisconsin from out of state: confirm the tax election and the state military pay subtraction.
The law behind this: Wis. Stat. § 321.62
Service members civil relief; state active duty: 6% interest cap and default-judgment protection for the Guard on state active duty of 30 days or more: read the statute.
Frequently asked questions
Does Wisconsin cover the National Guard on state active duty?
Yes. Wis. Stat. 321.62 defines a service member as a member of the national guard or state defense force ordered into state active duty for 30 days or more, and gives that member civil-relief protections. State active duty is the gap federal law ignores, and Wisconsin fills it for activations of 30 days or longer.
What is the Wisconsin interest rate cap?
Section 321.62 provides that a pre-duty obligation bearing interest above 6 percent per year may not, during state active duty, bear interest above 6 percent except by court order. Like the federal rule, "interest" includes service charges, renewal charges, and fees other than insurance, so the cap is on the all-in cost.
How does the default-judgment protection work?
When a defendant does not appear, the plaintiff seeking a default judgment must file an affidavit showing the defendant is not in state active duty. If the defendant is in state active duty, the court may not enter a default judgment until it appoints an attorney to represent and protect that member. It mirrors the federal default-judgment shield.
Does Wisconsin tax military pay?
Wisconsin has a state income tax but allows a subtraction for certain military pay, and a nonresident stationed here pays their elected home state, not Wisconsin, under the standard residency rules. Confirm the current military pay subtraction with the Wisconsin Department of Revenue.
Sources
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.