Chapter 7 vs Chapter 13 Bankruptcy
Chapter 7 eliminates debt in 3-4 months but requires passing the means test. Chapter 13 takes 3-5 years but lets you keep property and catch up on secured debts.
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| Criteria | Chapter 7 | Chapter 13 | Winner |
|---|---|---|---|
| Attorney Fees | $1,000-$2,000 | $2,500-$6,000 | Chapter 7 |
| Timeline | 3-4 months | 3-5 years | Chapter 7 |
| Debt Elimination | Immediate discharge | After plan completion | Chapter 7 |
| Keep Property | Only exempt property | Keep all property | Chapter 13 |
| Income Requirement | Below state median | Regular income needed | Depends |
Our Verdict
Choose Chapter 7 for a fresh start if you qualify and don't have significant assets to protect. Choose Chapter 13 to keep your home, catch up on mortgage payments, or if your income is above the means test threshold.
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Frequently Asked Questions
Which bankruptcy chapter is more common?
Chapter 7 accounts for about 63% of all consumer bankruptcy filings, with Chapter 13 making up most of the remainder.
Can I convert from one chapter to another?
Yes. Cases can be converted from Chapter 7 to 13 or vice versa if circumstances warrant, subject to eligibility requirements.