Are Government Debt Relief Programs Real

You’ve got some worrisome debt and you’ve heard about some federal programs that might be able to help. However, you’re concerned about misinformation or even scams. Are government debt relief programs real? Yes, they totally are, but let’s see what they have to offer.

Federal Debt Consolidation and Relief Efforts

If your problem is taxes, the Internal Revenue Service has the Fresh Start program that takes much of the unease out of debt repayment. A portion of that initiative greases the skids for use of a government debt consolidation program â€" Installment Agreement. The program provides a way for you to repay years of delinquent taxes. Another portion of Fresh Start facilitates use of the federal tax debt settlement program called Offer in Compromise.

Student Loan Disability Discharge

People who have a long-term disability may be eligible for a Total and Permanent Disability Discharge of their student loan. If you can meet the various conditions, you might be able to have your whole loan balance discharged. Wouldn’t that be something?

Income-Driven Student Loan Repayment

In more student loan help, the government provides a host of programs that can lower your monthly payments, with terms hinging on your earnings and family size. The idea is to render your student loan payments more manageable by making sure they only comprise a specific low percentage of your total monthly earnings.

Public Service Loan Forgiveness

Among other government debt relief programs that lend folks a hand, public loan forgiveness might provide relief to firefighters, first responders, or nurses or EMTs that work at a public hospital. There’s a decade worth of steps, though, but in the end, your remaining student loan debt might be forgiven.

Government Debt Relief for Medical and Hardship Situations

Let’s be clear: there is no once-size-fits-all program to assist with personal debt. However, there are local programs that can assist those who are mired in financial trouble. Uncle Sam has a website to assist you with medical and other bills. State and federal health insurance programs might be able to help you fork over for bills.

More specifically, the government may be able to help with prescription drug costs, telephone service, medical bills, home energy bills, and food. Note that, on its MedlinePlus site, the government offers info and programs concerning medical debt.

Legal Protections

Sometimes relief comes in the form of government protection. In fact, a measure called the Fair Debt Collection Practices Act restricts the behavior of debt collectors, who can sometimes be on the assertive or obnoxious side when it comes to getting you to repay. For instance, the Act bars debt collectors from engaging in behavior including threatening or abusive language, threats of arrest, and discussion of your financial situation with a third party.

The government also offers debt relief through collection measures and the statute of limitations. These can protect you if you’re sued or face a prospective judgment.

What’s more, the government also offers debt relief through bankruptcy, which you want to avoid, if possible. Chapter 7 is for the discharge of debts. If you file this type, you’ll have to relinquish some of your property for secured debts. With Chapter 13, you’re seeking to either restructure your payments to make them easier to handle, and/or erase part of your debt so you can manage payments.

Are government debt relief programs real? You bet your federal reserve note they are. The key is finding one that meets your needs. Once you do, get going on ridding yourself of your financial problem.

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