Loan and Equity Help

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. federal debt relief grants are not one of the many sources of funding available. 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.

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. 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

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. Since there are no such things as debt relief grants from the government, entities advertising these are likely offering bankruptcy services.

You are not limited to filing Chapter 7 bankruptcy for debt relief from the governmetn. Chapter 13 bankruptcy requires you to continue making payments to your creditors and have the debts paid off within a specified time frame. This is provided that the debtor has sufficient income to meet the payment amounts required by a court trustee. 

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. Individuals who file for Chapter 13, however, get to keep their encumbered properties so long as they meet their regular repayments.

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 TrustedID and rest assured that nobody will be able to get new credit cards in your name.