Debt Relief Grants From The Government Often Misrepresented
Regardless of what you may read in some advertisements, the government does not offer grants for private individuals to pay their bills. While there are many opportunities for a person to apply for funding grants, debt relief grants from the government do not actually exist. In fact, many of the advertisements selling information on how to get out of debt legally, are in reality advertising for bankruptcy, which is under the auspices of the federal government but is not a grant program.
There are some programs that may help those encumbered by unrealistic student loans and possibly with a mortgage foreclosure, provided the individual meets very strict criteria in qualifying the any of the programs, but they are not necessarily debt relief grants from the government. The government may forgive all or part of a federally-backed loan, but it cannot be misconstrued as debt relief grants from the government.
While the government does not advocate individuals filing for bankruptcy, it understands that in some instances that may be the only means of allowing people to get out from under burgeoning debt and start over again. Some companies may advertise how debt relief grants from the government will eliminate their debt and a Chapter 7 bankruptcy is the only program in which that can happen.
Criteria For Bankruptcy Is More Stringent
Recently, the federal government recognized that some individuals were using the bankruptcy court to get out of paying their financial obligations and took the steps to insure that creditors were not left holding the proverbial bag for those people. Today's new rules require individuals to participate in budgeting guidance before they can seek bankruptcy relief and since there art no debt relief grants from the government, firms that advertise as such are most likely considering the court as a way out of debt.
Chapter 7 bankruptcy however, is not the only avenue available to those looking for debt relief grants from the government. Chapter 13 bankruptcy also allows individuals to pay back their obligations over a period of time, which is based on the court's new rules. The one stipulation is that the person has enough income to meet the payment demands as stipulated by the court trustee.
Both types of bankruptcy may seem like debt relief grants from the government but in reality, with a Chapter 7, the individual may have to relinquish property to be sold by the court to satisfy some of the obligations. With a Chapter 13 bankruptcy, as long as they meet the monthly payments, they are allowed to keep their encumbered holdings.
