Differences Between Chapter 7 & 13

The two main chapters of bankruptcy for individuals are Chapter 13 and Chapter 7. Each chapter has its own requirements and benefits, which may or may not be appropriate for your individual situation. At Debt Relief Legal Group, our Tampa bankruptcy lawyers can sit down with you to establish which chapter is right for you and help you make the best decisions for your future.

The main differences between Chapter 7 and 13 are as follows:

  • Chapter 7: Also known as liquidation bankruptcy, allows you to discharge most of your unsecured debt. You liquidate non-exempt assets in order in this chapter of bankruptcy.
  • Chapter 13: Also known as the repayment plan, allows you to reorganize your debt into affordable monthly payment plans.

Chapter 7 Bankruptcy

If you have significant credit card debt, medical debt, or signature loans, Chapter 7 may be right for you. In order to file for this chapter of bankruptcy, you will need to pass a means test and your monthly income will be less than your expenses. Most debts are forgiven without repayment and it only takes up to six months. However, there are limits on what property and how much you are able to keep.

Chapter 13 Bankruptcy

If you are facing an IRS levy or foreclosure of your home, Chapter 13 may be the answer. Chapter 13 is also appropriate if you have assets you want to hold onto which you would lose in Chapter 7. Your income must be higher than your expenses to qualify for Chapter 13. This chapter allows you to keep your home and other property. The only downside is that you will be expected to “tighten your budget” and limit the amount of money you spend.

how can we help you?

If you’re having financial issues and know bankruptcy might be your only option..


I just want to say “thank you” to you and Mr. Feinberg. I am so grateful to you both. I’m going to take some time and really pray about what to do next. I really need someone who is completely knowledgeable of this process and really wants to help and not just take advantage of someone who is vulnerable. I kinda feel like that is what has happened to me. So I thank God for you both.


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