What's the difference between Chapter 7 and Chapter 13?
Chapter 7 is a liquidation case. A trustee can sell property that is not exempt and pay creditors. Chapter 13 is a repayment plan for people with regular income. You propose payments over three to five years and may catch up a mortgage if you stay current after you file. The court decides which chapter you can use.
On this page
People use "bankruptcy" for both chapters. The Code does not. One sells property that is not exempt. The other is a court-approved payment plan.
Chapter 7
Chapter 7 is a liquidation. A trustee gathers the estate and can sell nonexempt assets to pay creditors. The Chapter 7 basics page says most individual cases are no-asset cases, meaning there is nothing to sell after exemptions and liens.
A discharge, when the court grants one, usually comes 60 to 90 days after the first date set for the meeting of creditors. It does not remove a lien. Some debts survive, including support, certain taxes, and most government-backed student loans.
If your current monthly income is over the state median, you have to complete the means test. The July 2026 expense tables are the ones used for cases filed on or after July 15, 2026.
Chapter 13
Chapter 13 is also called a wage earner's plan. You need regular income. Unsecured debts must be less than $526,700 and secured debts less than $1,580,125 on the day you file. Those caps are the ones on the Chapter 13 basics page.
The plan runs three to five years. Under-median income generally means a three-year plan. Over-median income generally means five years. You start paying the trustee within 30 days of filing, even before the court confirms the plan.
Chapter 13 can stop a foreclosure and let you catch up the arrears, if you also make the regular mortgage payments that come due after you file. Will I lose my house if I file Chapter 7? compares that with a liquidation case.
What is the same
Both chapters start with a petition and, for individuals, a credit counseling briefing in the 180 days before filing. Both create an automatic stay. Both can end in a discharge of some debts. You can convert a Chapter 7 case to Chapter 13 if you are eligible and the case has not already been converted the other way.
What is not the same
| Chapter 7 | Chapter 13 | |
|---|---|---|
| Core job | Liquidate nonexempt property | Pay through a 3-to-5-year plan |
| Time in the case | Often a few months to a discharge | Three to five years of payments |
| Home arrears | No built-in catch-up plan | Can cure mortgage arrears over the plan |
| Income test | Means test can block the chapter | Debt caps and regular income |
| Co-signers | No special stay | Consumer-debt co-debtor stay |
Which one to file
That is a legal judgment. What to do when you can't keep up with the bills is the order for counseling, the petition, and the meeting. A lawyer can apply the means test and the debt caps to your actual numbers. This site cannot.
Sources
Where our facts come from
- U.S. Courts: Chapter 7 Bankruptcy Basicsuscourts.gov
- U.S. Courts: Chapter 13 Bankruptcy Basicsuscourts.gov
- Justice Department: Means Testingjustice.gov
Who wrote this page
- Written by
- Chapter Fresh editorial staff. Who runs this site
- Licensed professional
- None. No bankruptcy attorney has checked this page.
Ask which chapter fits
A bankruptcy lawyer who serves your area may call about chapter 7 vs chapter 13. The call does not file a case or hire them.