Understanding Government Debt Relief Grants
Written by ady on March 25, 2009 – 6:34 pm -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 debt relief grants from the government just isnít one of them. Unfortunately, what a lot of these ads are selling are 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. Another thing often mistaken fordebt relief grants from the government is when the government forgives all or part of a federally related loan.
Bankruptcy is the only option for some people to get out from under their debt, and the government recognizes that. Some advertisements claim that debt relief grants from the government are the solution, but the reality is that only bankruptcy allows them to start over.
How Bankruptcy Has Changed
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. 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. If you claim Chapter 13 bankruptcy, youíll 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.
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. Individuals who file for Chapter 13, however, get to keep their encumbered properties so long as they meet their regular repayments.
If you need a simple and easy, step-by-step kit to get you out of debt once and for all, be sure to reference Suze Orman credit reports. Suze has put together a world class software product that anyone can follow and climb their way out of debt easily.
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 Foreclosure
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