Chapter 7 is liquidation; Chapter 13 is an individual repayment plan.
Chapter 7 does not use the three-to-five-year plan associated with Chapter 13. Chapter 13 allows an eligible individual with regular income to propose payments over time. Neither chapter is automatically “better”; the appropriate review depends on eligibility, property, secured and priority debt, goals, and ability to perform the required obligations.
Side-by-side comparison
| Feature | Chapter 7 | Chapter 13 |
|---|---|---|
| Core structure | Trustee administration and possible liquidation of nonexempt assets | Court-approved repayment plan for an individual with regular income |
| Typical duration | Often measured in months for a routine case, though disputes can extend it | Generally three to five years |
| Property question | Nonexempt value and trustee administration are central | Property may be retained, subject to plan and statutory requirements |
| Arrears | Does not provide a Chapter 13-style plan to cure long-term debt arrears | May provide a structure for certain arrears while ongoing obligations continue |
| Income review | Means testing and other eligibility rules may apply | Income supports feasibility and affects plan requirements |
| Court filing fee* | $338 | $313 |
| Failure risk | Asset, eligibility, accuracy, or discharge issues can create serious consequences | Infeasible or missed payments, objections, and changed circumstances can lead to modification, conversion, or dismissal |
Questions that often change the comparison
- Is there home or vehicle equity, and which exemptions may apply?
- Are mortgage, car, tax, or support payments behind?
- Is household income stable enough for a multi-year plan?
- Were assets transferred or family members repaid recently?
- Which debts may not be discharged or require special treatment?
- Was a prior bankruptcy filed or discharged?
- Is an urgent sale, garnishment, levy, repossession, or eviction involved?
Compare lawyer roles
Chapter 7 counsel may focus heavily on pre-filing accuracy, property, means testing, discharge, and trustee administration. Chapter 13 counsel must also support plan calculation, confirmation, claims, payments, and later changes. Ask any lawyer to explain why the recommended chapter fits your facts and what would make the other chapter preferable.
Do not choose from a chart alone
This comparison omits many statutory and local details. Use it to prepare questions, then verify current official sources and obtain advice based on complete records.
Official sources
Continue the comparison
Chapter 7 overview · Chapter 13 overview · Consultation brief
*Court fees current as of August 13, 2026; verify before filing.