The two most common types of consumer bankruptcy work in fundamentally different ways. This guide breaks down every difference -- eligibility, costs, timelines, what happens to your property, and what debts each chapter eliminates -- so you can understand which one fits your situation.
Chapter 7 and Chapter 13 are the two main bankruptcy options for individuals. They share the same goal -- giving you relief from overwhelming debt -- but they take completely different paths to get there.
Chapter 7 is a liquidation bankruptcy. When you file, a court-appointed trustee reviews everything you own. Assets that are not protected by exemptions can be sold to pay creditors. In exchange, most of your unsecured debts -- credit cards, medical bills, personal loans -- are wiped out. The whole process typically takes about 4 to 6 months. Most Chapter 7 cases are "no-asset" cases, meaning the trustee finds nothing worth selling because everything is exempt. You keep your property and walk away debt-free.
Chapter 13 is a reorganization bankruptcy. Instead of liquidating assets, you propose a repayment plan to pay back some or all of your debts over 3 to 5 years. You make a single monthly payment to a trustee, who distributes the money to your creditors. At the end of the plan, remaining qualifying debts are discharged. You keep all of your property throughout the process.
Chapter 7 = give up certain property, eliminate debts fast. Chapter 13 = keep your property, pay back debts over time. Both result in a discharge, but the path, timeline, and trade-offs are different.
To file Chapter 7, individual debtors must pass the means test under 11 U.S.C. Section 707(b). The means test was added by the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 to prevent higher-income filers from using Chapter 7 when they could afford to repay some debts through Chapter 13.
The means test works in two steps:
Additionally, you cannot have received a Chapter 7 discharge within the past 8 years under Section 727(a)(8). For a detailed breakdown, see What Is the Means Test?
Chapter 13 does not use the means test. Instead, you must meet two requirements:
Chapter 13 also has its own discharge bars. Under Section 1328(f), you cannot receive a Chapter 13 discharge if you received a prior Chapter 7, 11, or 12 discharge within 4 years (filing date to filing date), or a prior Chapter 13 discharge within 2 years.
The means test only applies to Chapter 7. If your income is too high for Chapter 7, you can almost always file Chapter 13 instead -- as long as your debts are within the statutory limit and you have regular income. Many people end up in Chapter 13 specifically because they cannot pass the means test.
| Step | Timing |
|---|---|
| Complete credit counseling course | Within 180 days before filing |
| File petition, schedules, statements, and means test | Day 0 |
| Automatic stay takes effect -- all collections stop | Immediately upon filing |
| Trustee appointed to review your assets | Shortly after filing |
| 341 meeting of creditors | 21-40 days after filing |
| Complete debtor education course | Before discharge |
| Deadline for creditors to object to discharge | 60 days after 341 meeting |
| Discharge entered | ~60-90 days after 341 meeting |
| Case closed | Shortly after discharge |
| Step | Timing |
|---|---|
| Complete credit counseling course | Within 180 days before filing |
| File petition, schedules, statements, and proposed plan | Day 0 |
| Automatic stay takes effect -- all collections stop | Immediately upon filing |
| Begin making plan payments to the trustee | Within 30 days of filing |
| 341 meeting of creditors | 21-50 days after filing |
| Plan confirmation hearing | 20-45 days after 341 meeting |
| Continue making monthly plan payments | 3 to 5 years |
| Complete debtor education course | After all payments, before discharge |
| Discharge entered | After completing all plan payments |
The length of a Chapter 13 plan depends on your income. If your income is below the state median, your plan can be as short as 3 years. If your income is above the median, the plan must run for 5 years. The plan length is set under 11 U.S.C. Section 1325(b).
In Chapter 7, the trustee can sell your non-exempt property to pay creditors. However, every state provides exemptions that protect certain categories of property:
Some states let you choose between state exemptions and federal exemptions under 11 U.S.C. Section 522(d). Others require you to use the state scheme. In practice, the vast majority of Chapter 7 cases are "no-asset" cases because the debtor's property is fully covered by exemptions.
In Chapter 13, you keep all of your property. There is no liquidation. Instead, you repay creditors through your plan. However, your plan must pay unsecured creditors at least as much as they would have received in a hypothetical Chapter 7 liquidation. This is called the "best interests of creditors" test under Section 1325(a)(4).
This means if you have significant non-exempt assets, your Chapter 13 plan payments will be higher to account for what those assets would have been worth if sold in Chapter 7.
One of the biggest advantages of Chapter 13 is the ability to catch up on missed mortgage and car payments through the plan. If you are behind on your mortgage, Chapter 13 lets you cure the arrears over the plan period while resuming regular monthly payments going forward. Chapter 7 does not offer this option -- if you are behind, the lender can seek relief from the automatic stay and proceed with foreclosure or repossession.
Chapter 7 discharge under Section 727 eliminates most unsecured debts:
But certain debts survive under Section 523(a), including student loans (unless you prove undue hardship), child support and alimony, most tax debts, debts from fraud, DUI-related debts, and willful and malicious injury to persons or property. For the complete list, see Section 523: Nondischargeable Debts.
Chapter 13 discharge under Section 1328(a) eliminates everything Chapter 7 does, plus several additional categories of debt that survive Chapter 7:
This broader discharge is informally called the "super discharge." For some debtors carrying these specific types of debt, Chapter 13 is the only path to full relief.
Student loans, child support, alimony, most tax debts, debts from fraud, and DUI injury debts cannot be discharged in either Chapter 7 or Chapter 13. These survive no matter which chapter you file under.
A straightforward Chapter 7 case takes about 4 to 6 months from filing to discharge. The 341 meeting of creditors is held within 21 to 40 days of filing. Creditors then have 60 days to object to discharge. If no one objects (which is the case in the vast majority of consumer filings), the discharge order is entered shortly after that deadline passes. Federal court data shows the average time from filing to discharge in Chapter 7 is approximately 172 days -- just under 6 months.
Chapter 13 takes much longer because you must complete the entire repayment plan before receiving a discharge. Below-median-income debtors can have a 3-year plan. Above-median-income debtors are required to commit to a 5-year plan. Federal data shows the average time from filing to discharge in Chapter 13 is approximately 1,599 days -- about 4.4 years.
If your circumstances change during the plan (job loss, medical emergency), you may be able to modify the plan, convert to Chapter 7, or request a hardship discharge under Section 1328(b). But the hardship discharge does not include the super discharge -- it is equivalent in scope to a Chapter 7 discharge.
Chapter 7 remains on your credit report for 10 years from the filing date. Chapter 13 remains for 7 years from the filing date. Despite the shorter reporting period, Chapter 13 keeps you in active bankruptcy for longer, which can affect your ability to obtain new credit during the plan period.
| Cost | Chapter 7 | Chapter 13 |
|---|---|---|
| Court filing fee | $338 | $313 |
| Credit counseling course | $25 - $50 | $25 - $50 |
| Debtor education course | $25 - $50 | $25 - $50 |
| Typical attorney fees | $1,000 - $2,500 | $3,000 - $6,000+ |
| When attorney is paid | Usually upfront, before filing | Often paid through the plan |
| Total typical cost | $1,400 - $2,900 | $3,400 - $6,400+ |
Attorney fees vary significantly by location and case complexity. In major metropolitan areas, fees tend to be higher. Some districts have "no-look" fee guidelines for Chapter 13 that set a presumptively reasonable amount -- attorneys can charge up to that amount without having to justify it to the court.
One practical advantage of Chapter 13: because attorney fees can be paid through the plan, you may not need to pay the full amount upfront. Some Chapter 13 attorneys require only a small retainer (sometimes as low as $0 to $500) before filing and collect the rest through plan payments over 3 to 5 years.
Both chapters allow you to file a fee waiver or pay the filing fee in installments if you cannot afford it. For a detailed breakdown, see How Much Does Bankruptcy Cost?
The means test is the primary gatekeeper for Chapter 7. It was created by BAPCPA in 2005 under 11 U.S.C. Section 707(b)(2) to channel higher-income debtors into Chapter 13 repayment plans instead of Chapter 7 liquidation.
Here is how it works step by step:
The means test applies only to individual debtors with primarily consumer debts. It does not apply to business entities, active-duty military personnel who incurred debts during active duty, disabled veterans whose debts were incurred primarily during active duty or homeland defense, or debtors whose debts are primarily business debts rather than consumer debts. For a full guide, see What Is the Means Test?
Chapter 13 does not use the means test. However, your income still matters in Chapter 13 because it determines how long your plan must be (3 or 5 years) and how much you must pay to unsecured creditors.
| Factor | Chapter 7 | Chapter 13 |
|---|---|---|
| Type | Liquidation | Reorganization (repayment plan) |
| Duration | 4 - 6 months | 3 - 5 years |
| Means test required? | Yes | No |
| Regular income required? | No | Yes |
| Debt limits? | No limit | $2,750,000 total |
| Property | Non-exempt assets may be sold | Keep all property |
| Catch up on mortgage? | No | Yes, through plan |
| Catch up on car loan? | No | Yes, through plan |
| Cramdown on car loans? | No | Yes, under Section 506 |
| Super discharge? | No | Yes (details) |
| Filing fee | $338 | $313 |
| Typical attorney fee | $1,000 - $2,500 | $3,000 - $6,000+ |
| Attorney paid when? | Upfront | Often through plan |
| Discharge rate | ~85% | ~40% |
| Credit report impact | 10 years from filing | 7 years from filing |
| Repeat filing bar | 8 years (727(a)(8)) | 4 or 2 years (1328(f)) |
| Trustee role | Liquidate non-exempt assets | Distribute plan payments |
| Automatic stay | Yes | Yes (includes codebtor stay) |
| Best for | Low income, few assets, unsecured debt | Regular income, behind on secured debt, non-exempt assets |
The right chapter depends on your income, assets, debts, and goals. Here are common scenarios and which chapter typically fits best:
Best fit: Chapter 7. If your income is below the state median and your debts are primarily unsecured (credit cards, medical bills, personal loans), Chapter 7 will eliminate those debts in about 4 months. If all your property is exempt -- which is the case for most people -- you keep everything and walk away debt-free.
Best fit: Chapter 13. Chapter 7 cannot help you catch up on missed mortgage payments. While it temporarily stops foreclosure through the automatic stay, the lender can seek relief from the stay and proceed. Chapter 13 lets you cure mortgage arrears over the life of the plan while resuming regular payments, allowing you to keep your home.
Best fit: Chapter 13. If your household income exceeds the state median and you cannot pass the means test, Chapter 13 is your primary option. Your higher income means you can fund a repayment plan. The trade-off is a longer process (3 to 5 years), but you get to keep your property and may discharge debts that Chapter 7 cannot.
Best fit: Chapter 13. If your home equity, vehicle equity, or other assets exceed your state's exemption limits, a Chapter 7 trustee could sell them. Chapter 13 lets you keep everything as long as your plan pays unsecured creditors at least as much as they would have received from a Chapter 7 liquidation.
Best fit: Chapter 13. If you owe more on your car than it is worth and the loan is more than 910 days old, Chapter 13 lets you "cram down" the loan to the vehicle's current value under Section 506(a). The excess becomes unsecured debt, which may be partially or fully discharged. Chapter 7 does not allow cramdown.
Best fit: Chapter 13. If you carry debts for willful property damage, non-support divorce obligations, or government fines -- all of which survive a Chapter 7 discharge -- the Chapter 13 super discharge can eliminate them.
Best fit: Chapter 7. If you qualify and your primary goal is to eliminate unsecured debt as quickly as possible with no ongoing obligations, Chapter 7 provides the fastest path. No plan payments, no 3-to-5-year commitment, no trustee supervision.
Not sure which chapter you qualify for? Check your filing history and discharge bar dates.
Check Your EligibilityThe following statistics come from federal court records covering over 207,000 Chapter 7 and Chapter 13 cases in our database. These are actual outcomes -- not estimates or projections.
Chapter 7 has a discharge rate of approximately 85.5%. Out of 104,235 Chapter 7 cases in our dataset, 89,108 resulted in a discharge. The cases that do not end in discharge are typically dismissed early for procedural reasons -- failure to file required documents, failure to complete the credit counseling course, or failure to appear at the 341 meeting.
Chapter 13 has a discharge rate of approximately 40.3%. Out of 103,204 Chapter 13 cases, only 41,568 resulted in a discharge. More than 36,600 cases were dismissed -- most commonly for failure to make plan payments. This means that more than half of all Chapter 13 filers do not successfully complete their 3-to-5-year repayment plan.
The most common reason for Chapter 13 dismissal is failure to make plan payments -- accounting for over 10,600 dismissals in our data. Another 20,900+ were dismissed for other reasons, and over 2,700 were dismissed for failure to pay the filing fee. The data shows that committing to 3 to 5 years of payments is difficult for many filers, particularly those already in financial distress.
The average time from filing to any final disposition (discharge, dismissal, or other closure) is 211 days for Chapter 7 and 1,080 days (about 3 years) for Chapter 13. The Chapter 13 average includes cases dismissed early, which brings the overall number down. Cases that actually reach discharge average about 1,599 days -- approximately 4.4 years.
If you file Chapter 7 and meet all the requirements, you have roughly an 85% chance of receiving a discharge. If you file Chapter 13, the odds drop to about 40%. This does not mean Chapter 13 is a bad choice -- for many people, it is the only viable option or the strategically superior one. But it is important to go in with realistic expectations about the commitment required to complete a multi-year repayment plan.
Explore the data yourself on our interactive dashboard or check Chapter 13 failure rates by district and success rates by state.
Yes. You can convert a Chapter 13 case to Chapter 7 at any time as a matter of right under 11 U.S.C. Section 1307(a), as long as you have not previously converted from Chapter 7. Converting from Chapter 7 to Chapter 13 is also possible under Section 706(a), but only if the case has not been previously converted. Conversion can make sense if your financial situation changes after filing.
Yes. Both Chapter 7 and Chapter 13 trigger the automatic stay under Section 362 the moment you file. This immediately stops wage garnishments, lawsuits, collection calls, foreclosure proceedings, and repossession attempts. The difference is how long the stay lasts -- in Chapter 7, it lasts until the case is closed or discharged (a few months). In Chapter 13, it lasts for the entire plan period (3 to 5 years). For more on how the automatic stay works, see automaticstay.org.
Yes, but discharge bars apply. After a Chapter 7 discharge, you must wait 8 years before receiving another Chapter 7 discharge under Section 727(a)(8), or 4 years before receiving a Chapter 13 discharge under Section 1328(f). After a Chapter 13 discharge, you must wait 6 years for a Chapter 7 discharge under Section 727(a)(9) (with exceptions), or 2 years for another Chapter 13 discharge. These periods are measured from filing date to filing date. Use our eligibility checker to verify your dates.
In Chapter 7, a pending tax refund is considered property of the estate. If it is not covered by an exemption, the trustee can claim it. In Chapter 13, your tax refund may need to be turned over to the trustee as part of your plan, depending on your district's local rules and your plan terms. Some districts require debtors to turn over refunds above a certain amount during the plan period.
In Chapter 7, your discharge only protects you -- creditors can still pursue your cosigner for the full amount. Chapter 13 provides a "codebtor stay" under 11 U.S.C. Section 1301 that protects cosigners on consumer debts as long as the debt is being paid through your plan. This is one of the unique advantages of Chapter 13.
You have the legal right to file either chapter without an attorney (called filing "pro se"). However, bankruptcy is complex, and mistakes can be costly. In Chapter 7, errors on the means test or schedules can result in dismissal, denial of discharge, or loss of property. In Chapter 13, the repayment plan must comply with numerous statutory requirements, and most courts require the plan to be prepared with detailed financial calculations. Studies consistently show that pro se bankruptcy filers have lower discharge rates than represented filers.
This page is part of a free research network covering the major bankruptcy statutes:
Related chapters
This site is free and open-source. Donations support the Open Bankruptcy Project, a 501(c)(3) nonprofit (determination pending), funding PACER access fees and bankruptcy court transparency research.
Stay updated on new datasets and research findings
No spam. No marketing. Just data.
Dedicated Resources
Chapter 7: whatischapter7.com -- complete Chapter 7 bankruptcy guide
Chapter 13: chapter13plan.org -- Chapter 13 plan structure and confirmation guide
PACER cases made free through RECAP: 91 of 37.9 million
Every document we access becomes permanently free for the next researcher, attorney, or debtor.
$0 of $5,000 Q1 PACER research goal
1,500+ hours. No grants, no institutional backing. 0 supporters so far.
Fund this research