Many students struggle a lot to keep up with the repayment of their loans, and repayment assistance plan (RAP) help in providing support to these students to make their loan repayment affordable. With the help of these plans, the government pays the repayment of our loans and all we have to do is apply for a plan. Some debt repayment schemes allow a debtor to avoid bankruptcy and start a new financial plan to pay its creditors.
Who can file for a debt repayment scheme?
Every country has its repayment schemes but here are some common eligible criteria:
- A person whose liabilities are not more than $150,000
- A person who has not been involved in any court case for the last 5 years
- A person who is employed and generating a decent income
- A person who is not an owner of any business firm or involved in a partnership in any business
- A person who has not become bankrupt in the last 5 years
- A person who has not earlier applied for any debt repayment scheme
One should take the help of these plans by discussing everything with a licensed insolvency trustee (LIT) if he is under pressure to pay loans. These trustees are professionals who are trained by the government to give counseling to people who have become bankrupt or insolvent. There are some non-profit organizations also whose job is to educate many people related to credit counseling and debt repayment.