Chapter 7 vs Chapter 13 Decision Tree -- Which Should You File? (2026)

1. Is your household income below your state's median income?

The means test compares your last 6 months of income to your state's median for your household size.

2. Are you behind on your mortgage and trying to save your home from foreclosure?

3. Do you have significant non-exempt assets you want to protect?

Non-exempt assets are property that exceeds your state's exemption limits and could be sold in Chapter 7.

4. What kind of debt is your primary problem?

5. How important is speed to you?

6. Have you had a bankruptcy discharge in the past 8 years?

Check your eligibility at the discharge screener.

Chapter 7 Is Likely Your Best Option

Based on your answers, Chapter 7 bankruptcy appears to be a strong fit. Chapter 7 eliminates most unsecured debt in 3-4 months with a success rate above 93%. It is faster, cheaper, and more likely to succeed than Chapter 13.

Typical cost: $1,400-$2,900 total (filing fee + attorney). Timeline: 3-4 months to discharge.

Learn more: Chapter 7 Overview | Full Comparison | Means Test Calculator

Important: This is a general guide, not legal advice. Confirm your eligibility with a bankruptcy attorney who can review your specific financial situation.

Chapter 13 May Be Your Best Option

Based on your answers, Chapter 13 bankruptcy may better serve your goals. Chapter 13 lets you keep all property, cure mortgage arrears, and repay priority debts over 3-5 years. However, only about 48% of Chapter 13 cases result in discharge.

Typical cost: $3,300-$5,300 total (filing fee + attorney, paid through plan). Timeline: 3-5 years of plan payments.

Learn more: Chapter 13 Overview | Homeowner Guide | Plan Details

Consider carefully: Chapter 13 has a ~52% failure rate nationally. Make sure your budget can sustain 3-5 years of plan payments before committing. If your plan fails, you may have nothing to show for years of payments.

Chapter 13 May Be Your Only Option Right Now

A prior discharge within the last 8 years may bar you from receiving a Chapter 7 discharge (the waiting period under 11 U.S.C. section 1328(f) is 8 years for Ch.7-to-Ch.7). However, you may still be eligible for Chapter 13, which has shorter waiting periods.

Use the free discharge screener to check your exact waiting period based on your prior case type and discharge date.

Timing matters: If you are close to the end of the waiting period, it may be worth waiting a few months to file Chapter 7 instead.

You Likely Qualify for Either Chapter

Your situation suggests you may have options under both Chapter 7 and Chapter 13. For most people in this position, Chapter 7 is the better choice -- it is faster (3-4 months vs 3-5 years), cheaper, and has a 93%+ success rate compared to Chapter 13's ~48%.

Choose Chapter 13 only if you have a specific reason: saving a home from foreclosure, cramming down a car loan, or needing to repay priority debts like taxes.

Compare in detail: Full Side-by-Side Comparison | Cost Comparison | Filing Guide

How This Decision Tree Works

This tool walks you through the key factors that determine which bankruptcy chapter fits your situation. It is based on federal bankruptcy law (Title 11, U.S. Code) and outcome data from 4.9 million cases in the Federal Judicial Center Integrated Database.

The six questions cover the most important decision points: means test eligibility, foreclosure status, asset protection, debt composition, timeline preference, and prior filing history. These are the same factors a bankruptcy attorney evaluates during an initial consultation.

No personal data is collected or stored. All processing happens in your browser.

Key Statistics Behind the Recommendations

Chapter 7 discharge rate: 93%+ nationally (FJC data, FY 2008-2024)
Chapter 13 discharge rate: approximately 40-50% nationally
Chapter 7 timeline: 3-4 months from filing to discharge
Chapter 13 timeline: 3-5 years of monthly plan payments
Chapter 7 cost: $338 filing fee + $1,000-$2,500 attorney fees
Chapter 13 cost: $313 filing fee + $3,000-$5,000 attorney fees

Frequently Asked Questions

How do I decide between Chapter 7 and Chapter 13 bankruptcy?

Start with the means test: if your income is below your state's median, you likely qualify for Chapter 7. Then consider your goals -- do you need to save a home from foreclosure or catch up on car payments? If yes, Chapter 13. If you just want to eliminate unsecured debt quickly, Chapter 7 is usually better.

What if I qualify for both Chapter 7 and Chapter 13?

Many people qualify for both. Chapter 7 is generally preferred because it is faster (3-4 months vs 3-5 years), cheaper ($1,400-$2,900 vs $3,300-$5,300), and has a much higher success rate (93%+ vs ~48%). Choose Chapter 13 only if you have a specific reason: saving a home, cramming down a car loan, or repaying non-dischargeable priority debts.

Can I switch from Chapter 13 to Chapter 7?

Yes. Under 11 U.S.C. section 1307(a), a Chapter 13 debtor can convert to Chapter 7 at any time, as long as the case was not previously converted from Chapter 7. This is a common move when plan payments become unaffordable.

What is the means test?

The means test compares your income to your state's median income for your household size. If you are below the median, you automatically qualify for Chapter 7. If above, you must calculate disposable income after allowed deductions. Many above-median filers still pass after deductions for mortgage, car payments, taxes, and other expenses.

Chapter 7 vs Chapter 13Decision Tree

Chapter 7 Is Likely Your Best Option

Chapter 13 May Be Your Best Option

Chapter 13 May Be Your Only Option Right Now

You Likely Qualify for Either Chapter

How This Decision Tree Works

Key Statistics Behind the Recommendations

Frequently Asked Questions

Related Topics on This Site

Chapter 7 vs Chapter 13
Decision Tree