Home > Blog > How to Decide Between Chapter 7 and Chapter 13 Bankruptcy

There are several situations that can tip the scales between being able to resolve a financial crisis and recognizing that bankruptcy is the better approach. One of the first things you’ll need to do if you are going to proceed with bankruptcy is determining whether Chapter 7 or Chapter 13 is the best option. In some cases, you won’t have a choice because of the eligibility restrictions, but learning about them is your first step.


The difference between the two is that Chapter 7 is liquidation, whereas Chapter 13 is reorganization. While liquidation allows you to discharge qualifying debts and make a fresh start, reorganization is ideal if you want to keep your property. Chapter 7 bankruptcy is the quicker option, taking just a few months, compared to the 3 to 5 years it can take to settle a Chapter 13 bankruptcy case.

For the most part, you’ll find Chapter 7 bankruptcy to be your best bet, but if you don’t qualify for it because you don’t meet the means test or have significant non-dischargeable debts, Chapter 13 bankruptcy can help you lower payments, prevent wage garnishment, and stop litigation.

If you would like to know more about Chapter 7 and Chapter 13 bankruptcy and get advice from a professional about which you can and should utilize, give us a call at Bennett Guthrie PLLC. A bankruptcy attorney will go over your case and advise you about whether bankruptcy is a viable solution for your situation and discuss debt restructuring if that is the path to take. Call today to schedule an appointment to learn more about your options.