Government Debt Relief Grants: Too Good to Be True?
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. Unfortunately, what a lot of these ads are selling are bankruptcy services. Bankruptcy is under the purview of the government, but a government debt relief grant it is not.
The government may not offer grants to pay off debts, but they do handle bankruptcy matters. While not technically government debt relief grants, there are programs for people who need help with student loans or are facing foreclosure. These programs usually have very strict guidelines. The government can also forgive federal loans, but again, these are not government grants for debt relief .
The government recognizes that some people need bankruptcy in order to restart their lives, although the government does not recommend bankruptcy. The ads offering debt relief grants from the government may seem like your only solution, but really it's bankruptcy youre considering.
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. Since there are no such things as debt relief grants from the government, entities advertising these are likely offering bankruptcy services.
Besides Chapter 7 bankruptcy, there is another option for people who are looking for debt relief. If you claim Chapter 13 bankruptcy, youll be required to make regular payments on your debts and have them paid within a certain amount of time. That is if you can afford the payment amount a court trustee assigns.
Both forms of bankruptcy may be confused as government grants for debt relief, but they really aren't. Anyone who files for Chapter 7 will be required to liquidate all their property in order to pay their debts. Individuals who file for Chapter 13, however, get to keep their encumbered properties so long as they meet their regular repayments.
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Comments (0) 23.10.2009. 22:38