A side-by-side comparison — eligibility, timeline, what you keep, and which chapter fits your situation.
Chapter 7 and Chapter 13 are the two forms of consumer bankruptcy available to individual filers, and they work very differently. Chapter 7 is a liquidation bankruptcy that eliminates most unsecured debts in three to six months. Chapter 13 is a reorganization that restructures your debts into a three-to-five-year repayment plan while you keep your property.
Most people intuitively prefer Chapter 7 because it's faster. But the right choice depends on your income, your debts, and whether you have property (especially a home) that you need to protect. This page breaks down the core differences. For full details on each chapter, see the Chapter 7 Guide and the Chapter 13 Guide.
The practical tradeoffs most people weigh when choosing between the two chapters.
Chapter 7: 3–6 months from filing to discharge. Chapter 13: A 3-to-5-year repayment plan before discharge. Chapter 7 finishes quickly; Chapter 13 is a long commitment but provides protections while the plan runs.
Chapter 7: Income must be below your state's median or pass the means test. Chapter 13: No income cap — you need regular income sufficient to fund a plan. See eligibility details.
Chapter 7: State exemptions protect your home, car, and essentials; non-exempt property may be liquidated, though most filers lose nothing. Chapter 13: You keep all your property as long as your plan payments are current.
Both chapters discharge most unsecured debts (credit cards, medical bills, personal loans). Chapter 13 can also handle a wider range of situations — catching up on a mortgage, cramming down car loans, and dealing with recent tax debt.
Chapter 7 usually makes sense when your income is below your state's median, your debts are mostly unsecured, and you either don't own substantial property or your property is protected by exemptions. It's the fastest path to a fresh start and costs less overall.
Chapter 13 usually makes sense when your income is too high for Chapter 7, you're behind on a mortgage and want to catch up, you have significant non-exempt property you want to protect, or you have tax debt that Chapter 7 can't discharge. The repayment plan gives you a structured way to resolve debts while keeping everything intact.
Many filers are eligible for both — in which case the decision comes down to whether protecting property is worth the longer timeline. An attorney can model out your specific numbers under both chapters in a no-obligation consultation.
Yes. If you want to keep non-exempt property, catch up on a mortgage, or deal with debts Chapter 7 can't discharge, Chapter 13 may be the better choice even when Chapter 7 is available.
Chapter 7 stays on credit reports for up to 10 years; Chapter 13 for up to 7. Both hit your score similarly at filing, but most people see meaningful recovery within 1–2 years regardless of chapter.
Yes, conversion is possible. Chapter 13 cases sometimes convert to Chapter 7 if circumstances change (job loss, medical issues). Chapter 7 cases can convert to Chapter 13 if disposable income increases or the trustee challenges the filing. Your attorney handles conversion if it becomes necessary.
Chapter 7 generally costs less in attorney fees because it's simpler and shorter. Chapter 13 spreads attorney fees into the monthly plan payments, making the upfront cost lower but the total higher. See cost of bankruptcy for a full breakdown.
An attorney can model out your options under both chapters and tell you which one actually makes sense for your numbers.