Chapter 13 vs Chapter 7 Bankruptcy
**Chapter 7** discharges qualifying unsecured debt quickly if means-tested income allows. **Chapter 13** is a 3–5 year court-supervised payment plan that can save homes from foreclosure when you have regular income.
Step by step
1. Run means test
Income may force Chapter 13 instead of Chapter 7.
2. List secured assets
Keep house or car often requires Chapter 13 arrearage cure.
3. Compare plan payment
Disposable income funds the Chapter 13 plan.
Chapter 13 vs 7
Attorney advice is essential—this is an overview, not legal guidance.
- Chapter 7: Faster discharge; asset exemptions; income limits.
- Chapter 13: Repayment plan; catch up mortgage; longer on credit report.
Use our calculators
Common mistakes
- Filing without credit counseling certificate
- Incurring new debt before filing
FAQ
Which is worse for credit?
Both hurt scores—Chapter 13 stays longer while the plan runs.