If you are wondering how you are ever going to be able to climb out from underneath your tremendous debt, you may want to consider bankruptcy. There are many chapters of bankruptcy.

Chapter 7 is a liquidation chapter wherein you list all of your assets and debts as of the date of filing. You are entitled to keep a certain amount of assets which are considered exempt. Those debts which are dischargeable will be discharged as part of the bankruptcy process. To qualify to file a Chapter 7 bankruptcy, your total household income must be under a certain level. Because Martinson Law Offices is a debt relief agency, we can assist people who need to file for bankruptcy relief.

A Chapter 13 action is a reorganization chapter. You would make a plan to pay all, or a portion of your debt, over a period of five years. Payments under this plan are usually made as direct withdrawals by your employer from your paycheck. Payments are made to the bankruptcy trustee who distributes the appropriate amounts to your creditors who have filed claims in your bankruptcy. If you comply with the terms of your Chapter 13 plan, then you will receive a discharge of any remaining debt.

For more information regarding your rights under bankruptcy law, please contact Martinson Law Offices.