Debt Relief Grants from the Government: Too Good to Be True?
Thursday, February 19th, 2009 Subscribe To Our Feed
The government does not offer grant money to people who need to pay off their debts, no matter what you may have heard. Although varieties of grants for funding are available,government debt relief grant are not one of them. A lot of the companies offering ways to legally get out of debt are really offering bankruptcy services. Bankruptcies are handled by the government, but debt grants are not. {The government may not offer grants to pay off debts, but they do handle bankruptcy matters.}
There are programs designed to help individuals bogged down by huge student loans and threats of mortgage foreclosure, for example, but these have strict requirements and are not classified as debt relief grants from the government. Also confused for government debt relief grants is the government’s ability to forgive federal loans.
Bankruptcy is the only option for some people to get out from under their debt, and the government recognizes that. Debt relief grants from the government will not give you the chance you need to start over, only bankruptcy can do that.
Bankruptcy Rules Have Recently Been Tightened
To protect creditors from those people who abuse bankruptcy laws, the government has recently tightened bankruptcy regulations. One of those regulations includes requiring anyone who claims bankruptcy to go through credit counseling first. Once again, the companies youíve seen offering help with debt relief grants from the government are probably offering bankruptcy services.
You can get debt relief from the government in other ways than just filing Chapter 7 bankruptcy. According to Chapter 13 bankruptcy rules, the debtor is required to pay off his debts on a regular basis and within a stipulated time. This happens only if you are able to meet the payment amounts set by a court trustee.
Although both Chapter 7 and Chapter 13 bankruptcy might be misconstrued as debt relief grants from the government, in actuality, individuals who file for Chapter 7 may have to surrender any property they own, to be liquidated for debt repayment. If you go with Chapter 13, you get to keep your property as long as you make the court appointment payments.
One of the ways that many people get themselves into a debt emergency is when they have been victims of credit fraud. The best defense to this is a good offence. Subscribe to a quality identity protection site like IDFreeze and rest assured that nobody will be able to get new credit cards in your name.
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