ABA Family Legal Guide

Consumer Bankruptcy

Chapter 7 or Chapter 13?

The differences between the two consumer bankruptcies can see pretty confusing. Is one better than the other? Is there a choice to be made? This section compares the pluses and minuses of Chapter 7 versus Chapter 13 bankruptcy as an option and about who is eligible for which type.

1. Whose Choice?
2. Advantages to Each

Remember This:

• Most debtors can choose whether to file for bankruptcy under Chapter 7 or Chapter 13. However, the 2005 Bankruptcy Law means that some bankruptcies will be eligible for discharge only in Chapter 13.