Benson Law Firm

Bankruptcy can discharge most, if not all, your unsecured debts (e.g., medical debt and credit card balances). It can help you catch up on past due mortgage payments, avoid second mortgages in some cases, cram down loans for cars and investment property, and provide a fresh financial start.

Your credit score will initially drop but may recover significantly within 2-3 years with proper management. Many clients work with consultants to improve their scores post-bankruptcy.

A Chapter 7 case typically lasts 4-5 months but can extend up to a year if complex. A Chapter 11 case can take from approximately a year to several years. A Chapter 13 case usually extends 3-5 years.

If you have property that is largely exempt and your household income is at or below the median, you might benefit most by filing a Chapter 7 case.

A Chapter 7 case generally has the most economic benefit because most unsecured debt can be discharged in full. However, a Chapter 13 case can provide significant benefit in the form of avoided or reduced secured debts. A Chapter 11 case is generally the most expensive since it is utilized primarily by corporations or individuals with significant income and debt/assets.

No. Every debt must be reported in your bankruptcy case, along with all of your assets.

Generally no, parking tickets and other fines or penalties owed to government entities are not dischargeable in bankruptcy. However, you can pay them down in a Chapter 13 Plan. You must repay them in full over the course of the plan (usually 3–5 years). They’re treated as non-dischargeable unsecured debts. If you don’t pay them in full during the plan, the balance will still be owed after the bankruptcy ends.