By Ziv Shay | Updated April 2026
Compare Chapter 7 vs Chapter 13 bankruptcy: eligibility, costs, timeline, and impact on assets. Find out which bankruptcy option fits your situation in 2026.
| Feature | Chapter 7 Bankruptcy | Chapter 13 Bankruptcy |
|---|---|---|
| Duration | 3-6 months | 3-5 years |
| Debt Discharged | Most unsecured debt eliminated | Repay portion through plan |
| Assets | May lose non-exempt property | Keep all property |
| Income Requirement | Must pass means test (low income) | Regular income required |
| Cost | $1,500-$3,500 (attorney + fees) | $3,000-$6,000 (attorney + fees) |
| Credit Impact Duration | 10 years on credit report | 7 years on credit report |
| Best For | Low income / few assets | Higher income / want to keep property |
| Chapter 7 Bankruptcy | Chapter 13 Bankruptcy | |
|---|---|---|
| Total Debt | $50,000 | $50,000 |
| Amount Repaid | $0 (discharged) | $20,000-$30,000 (3-5 yr plan) |
| Attorney + Filing Fees | ~$2,000 | ~$4,500 |
| Time to Completion | 4 months | 3-5 years |
| Home Kept? | Only if exempt | Yes |
| Credit Report Impact | 10 years | 7 years |
It depends on your state's homestead exemption. If your equity exceeds the exemption, the trustee can sell the home. Many states have generous exemptions that protect your home.
Not always. Chapter 7 requires passing a means test based on income. If your income is above your state's median, you may be required to file Chapter 13.
Student loans (usually), child support, alimony, most tax debts, court fines, and debts from fraud or DUI cannot be discharged in either chapter.
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