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Debt Relief Act – The Credit Card & Mortgage Debt Relief Programs

November 4, 2011

Debt Relief Act

debt relief act

The Debt Relief Act, also known as the the Credit Card Debt Relief Program and Obama’s Debt Relief Act among many others, was founded by President Obama in 2009, as a way for individuals who have over 10,000 dollars of unsecured credit card debt, to receive relief in the form of a large percentage of their debt essentially wiped away. The total amount that Obama set aside for the Debt Relief Act was 797 billion dollars which the sole purpose was to stimulate the US economy due the millions of people who were laid off and as a result had to use credit card resulting in debt . The percentage of debt forgiven can be up to 50 to 70 percent of the entire debt total and was founded with the mission of reducing financial burdens placed upon Americans, as well as provide a reputable as well as credible source of debt relief being that there are so many scams out there.

How Debt Relief Act Funds Are Distributed

In order to begin the Debt Relief Act, the money for the program was disbursed in the form of tax rebates to firms as well as debt collectors, who were in a frenzy over delinquent account and were looking for an alternative when it came to getting their debtors to pay their debt off. Being that these corporations now have this extra funding, they can now offer to those who are paying their debts to them, debt settlement in which their debt is cut by a large percentage and only have to pay now on a fraction of the original sum.

How Consumers Can Benefit From The Debt Relief Act

If you happen to have credit card debt that has exceeded the total of 10,000 dollars and are looking to benefit from this revolutionary program, the best thing to do now would be to meet with a reputable credit card settlement company and inquire through them about using the Debt Relief Act for your personal situation.

 

MORTGAGE DEBT RELIEF ACT

The Mortgage Debt Relief Act was started in 2007 and focused on offering a remedy to the traditional rule that you must be taxed on any amount of mortgage debt that was forgiven from the lender that you borrowed from. This act is specifically for those who had debt forgiven due to foreclosure as well restructuring mortgages, in which borrowers used the cancellation of their mortgage debt to either; to purchase, build, make improvements to the home as well as and debt the resulted from these actions, as well as certain cases of one refinancing their home. Under this new debt relief act, the individual who received forgiveness on mortgage debt, no longer had to pay tax on up to 2 million dollars of forgiven debt, or 1 million if a couple is filing separately from one another. The program is set to run through 2008 to 2012 and specifically states that one can claim any amount of money that was lost on either the sale as well as the foreclosure of the home.

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