Which chapter should I file ? is almost always the first question someone considering filing bankruptcy.
This chart will highlight the differences between the two chapters most individuals select.
| Chapter 13 | Chapter 7 | |
| Fees | Partial payment only before filing- generally more expensive than 7 | Range from $1500 up depending on issues |
| Timing | Less cash upfront required to file because fees can be paid through plan. | No case can be filed until all fees are paid. |
| Credit reporting | 7 years from the date of filing. | 10 years from the date of filing. |
| Risk | trustee generally supportive of your bankruptcy choice. | More scrutiny. UST charged with finding “abusers”. |
| Assets | You keep all your assets | You keep all exempt assets; trustee may liquidate non-exempt assets. |
| Control | You have right to dismiss the case; conversion to Chapter 7 is an option | Dismissal unavailable; trustee directs case. Conversion possible |
| Discharge | Broader discharge in 13 | More debts survive 7 |
| Secured debts | Payable over life of plan | Prepetition terms control |
| Costs | Filing fee $281; financial management class provided at no cost by trustee | Filing fee $306; financial management class paid for by debtor |
| 401(k) loans | Repayment permitted | Repayment excluded from allowable expenses for means test |
