Chapter 7 vs. Chapter 13: The Rules That Decide
Chapter 7 and Chapter 13 solve different problems under different rules. Chapter 7 is a roughly four-month discharge of unsecured debt; Chapter 13 is a three-to-five-year repayment plan with tools Chapter 7 lacks. Eligibility rules, not preference, often make the choice.
Who can file which chapter
Chapter 7 requires passing the means test or having primarily non-consumer debts. Chapter 13 requires regular income and debts under the statutory cap (a combined limit under current law), and only individuals — not corporations — may use it.
What each discharge covers
Both discharge credit cards, medical bills, and personal loans. Chapter 13's discharge is slightly broader — it can discharge some divorce-related property settlement debts and certain older obligations Chapter 7 cannot — while both leave support, most taxes, and most student loans intact.
The tools only Chapter 13 has
Curing mortgage arrears over the plan, cramming down car loans older than 910 days, stripping wholly unsecured junior mortgages, and protecting co-signers through the co-debtor stay are Chapter 13 exclusives — the reasons homeowners and car owners often choose the longer chapter.
Exemption amounts and rule thresholds change on statutory schedules. See our monthly rule reports for the current figures with citations to the official sources.
Need help protecting what you've worked for?
Majors Law Group, P.C. — an independent bankruptcy firm running its practice on Bankruptcy.AI — handles Chapter 7 and Chapter 13 cases in Arizona and Washington.
Bankruptcy.AI is a technology platform, not a law firm, and does not provide legal advice. Majors Law Group, P.C. is a separate, independent law firm. This page is general information and is not legal advice; outcomes depend on your specific facts.