Public Guide

Chapter 7 and Chapter 13: General Comparison

A neutral comparison of Chapter 7 liquidation and Chapter 13 repayment-plan cases, including eligibility, property, debt, timing, and discharge.

Chapter 7 and Chapter 13 are different federal bankruptcy processes. Neither chapter can be selected reliably from income or debt totals alone.

TopicChapter 7Chapter 13
StructureTrustee administers nonexempt estate propertyIndividual proposes a court-supervised repayment plan
Typical durationOften measured in monthsGenerally three to five years
Income frameworkMeans-test and abuse rules may applyRegular-income, feasibility, and plan-payment rules apply
PropertyExemptions and trustee administration are centralPlan treatment can permit retention subject to statutory requirements
Debt limitsNo general Chapter 7 debt ceilingCurrent statutory debt limits apply
DischargeAvailable for qualifying debts after statutory stepsAvailable after qualifying plan completion, with different scope

Secured debt, arrears, priority claims, recent transfers, prior discharges, business activity, tax debt, domestic support, codebtors, and local practice can materially change the comparison.

The official schedules, means-test forms, and plan forms apply detailed definitions. A public calculator or comparison does not determine chapter eligibility or recommend a filing.

Official Sources

This page provides general process information and does not recommend a chapter or determine eligibility, plan terms, property treatment, or discharge.