Understanding Federal Debt Relief Grants
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 it a government grants for debt relief it is 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.
Although the government does not advocate bankruptcy, it recognizes that the only option for some people is to declare bankruptcy and start all over again. Some advertisements claim that government debt relief grant are the solution, but the reality is that only bankruptcy allows them to start over.
Unfortunately, so many people have abused bankruptcy laws that the government has had to tighten bankruptcy regulations. One of those regulations includes requiring anyone who claims bankruptcy to go through credit counseling first. Again, because there really are no government grants for debt relief, the companies youve seen are likely offering bankruptcy services.
You can get federal debt relief grants 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.
Neither Chapter 7 or Chapter 13 bankruptcy are government debt relief grants. In fact, those that file Chapter 7 have to liquidate all their property in order to make additional payments to their creditors. If you go with Chapter 13, you get to keep your property as long as you make the court appointment payments.
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