Chapter 7 vs. Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 are the two most common personal bankruptcy types, and they differ significantly in eligibility, timeline, what happens to your property, and how long the process takes. Here's a side-by-side comparison.
Chapter 7
- Eligibility
- Means test — income below state median generally qualifies
- Timeline
- Typically a few months
- Property
- Non-exempt assets may be liquidated
- Credit Impact
- Generally reported for up to 10 years
- Cost
- Lower court/attorney cost, faster process
Chapter 13
- Eligibility
- Requires regular income to support a repayment plan
- Timeline
- 3-5 year repayment plan
- Property
- Generally keeps property while catching up on payments
- Credit Impact
- Generally reported for up to 7 years
- Cost
- Often higher attorney fees given plan complexity
Which Tends to Fit Which Situation
In general terms, Chapter 7 tends to fit filers with limited income and few non-exempt assets who want the fastest possible resolution, while Chapter 13 tends to fit filers with steady income who want to keep property like a home or car by catching up on payments over time. This is general framing only, not a recommendation for your specific situation.
This Decision Belongs With an Attorney
Choosing between Chapter 7 and Chapter 13 depends on details specific to your income, assets, debts, and goals that this page cannot evaluate. This is not a recommendation — consult a licensed bankruptcy attorney to determine which chapter, if either, fits your situation.
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This information is for general education only and is not legal advice. Bankruptcy law is complex and varies by jurisdiction and individual circumstances. Consult a licensed bankruptcy attorney before making any decisions about filing.