The government offers debt relief programs to those who qualify. If you are struggling to make your monthly payments, there may be a program that can help you get back on track. Here we will discuss some of the most common debt relief programs the government offers.
Keep in mind that not everyone will qualify for these programs, and you should speak with a qualified debt relief specialist to see if you are eligible. Moreover, it should also be noted, the government doesn’t have any sort of debt relief program for credit card debt, or other types of consumer debt.
IRS Fresh Start Program
Every year, millions of Americans struggle to pay their taxes. While the IRS offers a variety of payment options, some taxpayers find themselves unable to meet their obligations. For these taxpayers, the IRS Fresh Start Program can provide much-needed relief. The program offers a number of benefits, including the ability to negotiate a payment plan with the IRS.
This can be a godsend for taxpayers struggling to make ends meet. In addition, the program can also help those who have unpaid tax debt from previous years. By providing a way to repay this debt over time, the Fresh Start Program can help taxpayers get back on track financially.
If you owe back taxes, don’t despair – help may be available through the IRS Fresh Start Program.
Income-Driven Repayment for Student Loans
Anyone who has ever taken out a student loan knows that the monthly payments can be a major financial burden. You may be eligible for an income-driven repayment plan if you have federal student loans. These plans are based on your income and family size, and they can make your monthly payments more affordable.
You can learn more about these plans by visiting the Department of Education’s website.
Income-driven repayment plans are not suitable for everyone, but if you struggle to make your monthly payments, they may be worth considering. You should also remember that if you enter into an income-driven repayment plan, the total amount you repay over the life of the loan will be higher. However, the lower monthly payments can provide much-needed relief in the short term.
For a great overview on government debt relief programs and how you can use them, head to Freedom Debt Relief. You’ll also find help with consumer debt there.
Total and Permanent Disability Discharge
If you are totally and permanently disabled, you may be eligible for a complete discharge of your student loan debt. To qualify, you must submit documentation from a physician that indicates that your disability is total and permanent. You can find more information about this program on the Department of Education’s website.
A complete discharge of your student loan debt can provide some much-needed financial relief if you are disabled and unable to work. However, it is important to know that this program is only available to those truly disabled and cannot work. If you are able to work, even on a part-time basis, you will not be eligible for this program.
Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act is a federal law that provides some protections for servicemembers. The act allows servicemembers to postpone or reduce debt payments.
For example, the act prohibits creditors from taking specific actions against servicemembers, such as repossessing property or foreclosing on a home. The act also caps the interest rate that can be charged on debts incurred before active duty. In addition, the act provides several other protections, including the ability to terminate leases and the protection of life insurance benefits.
Fair Debt Collection Practices Act
Although the government can’t step in and clear the debts of everyone, they have enacted policies to keep you safe from abusive practices. This federal law prohibits debt collectors from using specific techniques, such as making repeated phone calls or using obscene language.
The Fair Debt Collection Practices Act also requires debt collectors to provide certain information to consumers, such as the debt amount and the creditor’s name. If you are being harassed by a debt collector, you can find more information about your rights on the Federal Trade Commission’s website.
