The government does not offer grant money to people who need to pay off their debts, no matter what you may have heard. There are a lot of government grants out there, but debt relief grants from the government just isnít one of them. Many of these advertisements on how you can legally get out of debt are actually selling bankruptcy  services. Bankruptcy is under the purview of the government, but it a grant program 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. The government can also forgive federal loans, but again, these are not debt relief grants from the government.

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.

Bankruptcy Rules Are Changing

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. According to Chapter 13 bankruptcy rules, the debtor is required to pay off his debts on a regular basis and within a stipulated time. That is if you can afford the payment amount a court trustee assigns. 

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. As long as you continue to make regular payments (as appointed by the court), you get to keep your property when you file for Chapter 13 bankruptcy.

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