The U.S. government will not pay or forgive your debts, even if you're a veteran. If you have a VA-backed home loan, you may be able to take advantage of forbearance or deferment, but if you can't pay the loan, it will eventually be foreclosed. If you owe money to private lenders and you can't afford to pay, you have the same options as non-veterans, mainly debt consolidation, debt management plans, debt settlement, and bankruptcy.