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Debt Relief Grants from the Government: Too Good to Be True?
By plrprousers | February 12, 2009
Despite the fantastic claims you may have seen in certain ads, the government does not in fact offer grants to people to pay off their debts. There are a lot of government grants out there, but government debt relief grant just isnít one of them. A lot of the companies offering ways to legally get out of debt are really offering bankruptcy services. Bankruptcy is under the purview of the government, but it a grant program it is not. {The government may not offer grants to pay off debts, but they do handle bankruptcy matters.}
There are programs out there that can help with student loans and people facing foreclosure. However, there are strict guidelines for these programs, and they are not considered debt relief grants from the government. Also confused for government debt relief grants is the government’s ability to forgive federal loans.
The government recognizes that some people need bankruptcy in order to restart their lives, although the government does not recommend bankruptcy. 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
Realizing that increasing numbers of individuals were abusing bankruptcy laws as an easy way to get out of their debts, the government has created new rules to ensure that creditors do not end up being forced to pay for the misdeeds of irresponsible spenders. Nowadays, individuals are required to receive budget counseling before they are considered for bankruptcy relief. Again, because there really are no debt relief grants from the government, the companies youíve seen are likely offering bankruptcy services.
Besides Chapter 7 bankruptcy, there is another option for people who are looking for debt relief from the government. According to Chapter 13 bankruptcy rules, the debtor is required to pay off his debts on a regular basis and within a stipulated time. That is if you can afford the payment amount a court trustee assigns.
Both forms of bankruptcy may be confused as debt relief grants from the government, but they really arenít. Anyone who files for Chapter 7 will be required to liquidate all their property in order to pay their debts. As long as you continue to make regular payments (as appointed by the court), you get to keep your property when you file for Chapter 13 bankruptcy.
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 creditlock.com and rest assured that nobody will be able to get new credit cards in your name.
Tags:bankruptcy laws,bankruptcy relief,Bankruptcy Rules,Bankruptcy Services,chapter 13 bankruptcy,chapter 7 bankruptcy,creditors,debt relief,debtor,debts,Government Entities,Grant Program,money,Mortgage ForeclosureRelated posts
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