The Differences Between Chapter 7 And Chapter 13

Are you struggling with debt and exploring bankruptcy as an option? Chapter 7 and Chapter 13 bankruptcy are the most common forms of bankruptcy for individuals. Following are some of the key differences between Chapter 7 and Chapter 13.

What type of debt relief do Chapter 7 and Chapter 13 offer?

  • Chapter 7 bankruptcy is a liquidation bankruptcy, meaning that debt is discharged and the proceeds from non-exempt assets are used to pay off creditors. The majority of cases, however, are "no-asset" cases in which the debtor does not have to give up any property.
  • Chapter 13 is a reorganization bankruptcy. In a Chapter 13, you propose a plan to pay back some or all of your debt over a period of three to five years.

What are the eligibility restrictions?

  • In order to be eligible to file a Chapter 7, there are two main requirements. First, you may only file a Chapter 7 bankruptcy once every eight years. Second, you must be under a certain income level based on your household size in order to pass the "Means Test."

How long does it take?

  • Chapter 7 bankruptcy typically takes from four to six months, from filing date to discharge
  • A Chapter 13 bankruptcy lasts between three and five years, depending on your circumstances. .

Do both Chapter 7 and Chapter 13 allow for "stripping" of second mortgages and other junior liens?

  • Chapter 7 does not allow for lien stripping.
  • Chapter 13 does allow for lien stripping, under certain circumstances.

Contact Our Cincinnati, Ohio, Bankruptcy Attorneys

To learn more about your bankruptcy options, contact us today online or by telephone at 513-621-7902 to arrange a consultation with an experienced Cincinnati bankruptcy lawyer.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.