Practical Tools & Guides
Visual guides and reference tools
Side-by-side comparisons, an interactive timeline, a debt-type explorer, and plain-language explainers — all with sources and review dates.
Chapter 7 versus Chapter 13
| Topic | Chapter 7 | Chapter 13 |
|---|---|---|
| Who it is for | Individuals with limited income who pass the means test and want to discharge qualifying debts quickly. | Individuals with regular income who want to reorganize debts and catch up on arrears over time. |
| Typical length | About 3–4 months from filing to discharge. | 3 to 5 years of plan payments. |
| What happens to property | A trustee may sell non-exempt property; many debtors keep all exempt property. | You generally keep your property while making plan payments. |
| Treatment of arrears | Mortgage or vehicle arrears are generally not cured through the case. | Past-due mortgage and some other arrears can be paid through the plan. |
| Income requirement | Must pass the means test (income below median, or no presumption of abuse after deductions). | Must have regular income sufficient to fund the plan; income above median usually means a 5-year plan. |
| Co-debtor protection | Discharge protects you, not consumer co-debtors. | A co-debtor stay may temporarily protect consumer co-debtors. |
| Discharge timing | Relatively quick discharge at the end of the short case. | Discharge generally occurs after all plan payments are completed. |
Interactive bankruptcy timeline
Typical milestones — actual dates vary by district and case. Hover or focus a step for detail.
- 1
Before filing
Credit counseling & preparation
Complete an approved credit counseling course (within 180 days before filing) and gather your financial information. Actual timing depends on your preparation.
- 2
Day 0
Filing
Your case is filed; the automatic stay begins immediately. A trustee is assigned and a meeting date is set.
- 3
Weeks 3–6
341 meeting of creditors
You attend the meeting and answer the trustee's questions under oath. Actual dates vary by district.
- 4
After the meeting
Debtor education & trustee review
Complete the debtor education course and respond to any trustee document requests.
- 5
Chapter 7: ~3–4 months
Discharge (Chapter 7)
If no objections, the court enters a discharge order and the case closes shortly after.
- 6
Chapter 13: 3–5 years
Plan payments & discharge (Chapter 13)
You make monthly plan payments; once complete and all requirements met, the court enters a discharge.
Debt-type explorer
General unsecured (credit cards, medical bills)
Typically dischargeable in both chapters. In Chapter 13, they are paid a percentage (often low) of what is owed.
Asset & exemption basics
Exemptions are laws that let you protect certain property from being sold to pay creditors. Each state has its own exemption list, and some states let you choose between state and federal bankruptcy exemptions. Some states offer generous homestead protections; others protect retirement accounts or vehicles up to a value.
- • Equity matters: an exemption protects your equity (value minus liens), not always the whole asset.
- • Federal vs. state: some states let you choose; most require you to use the state list.
- • Non-bankruptcy exemptions: certain federal laws (e.g., retirement accounts) may apply regardless.
The automatic stay: what it may stop
A creditor lawsuit over a credit card
Usually stopped by the stay.
Wage garnishment from a judgment
Usually stopped once the creditor is notified.
Foreclosure sale
Temporarily stopped; lender may seek relief from the stay.
Vehicle repossession
Temporarily stopped; lender may seek relief from the stay.
Collection of child support or alimony
Generally NOT stopped by the stay.
Certain tax proceedings
Some tax actions continue; depends on the type and stage.
Criminal proceedings
Not stopped (criminal cases are not affected).
Important exceptions include most domestic support obligations, certain tax proceedings, and criminal matters.
Credit counseling vs. debtor education
| Feature | Credit counseling | Debtor education |
|---|---|---|
| When | Within 180 days BEFORE filing. | AFTER filing, before discharge. |
| Purpose | Evaluate your situation and alternatives; receive a budget analysis. | Learn personal financial management for going forward. |
| Provider | An approved credit counseling agency. | An approved debtor education (personal financial management) provider. |
| Required for | All individual debtors. | All individual debtors seeking a discharge. |
| Result | A certificate filed with your case. | A certificate filed before discharge. |
Myth versus fact
Myth
You lose everything you own in bankruptcy.
Fact
Exemptions protect many assets. Many people keep all of their property, especially in Chapter 13.
Myth
You will never get credit again.
Fact
Many people begin rebuilding credit soon after discharge, though terms and timing vary.
Myth
Bankruptcy erases all debts.
Fact
Some debts — like most student loans, recent taxes, and support obligations — generally survive.
Myth
You can choose which debts to include.
Fact
You must list all debts and assets. You cannot leave debts out selectively.
Myth
Married couples must file together.
Fact
Spouses may file jointly or separately; the right choice depends on the debts and property involved.
Myth
The means test is the only thing that decides Chapter 7 eligibility.
Fact
The means test is one part; eligibility also depends on the facts of your case and other legal requirements.
Questions to ask a bankruptcy attorney
Choosing a chapter
- Based on my income and property, which chapter fits my situation?
- What are the main advantages and risks of each chapter for me?
- Does the means test appear to allow Chapter 7, and what deductions apply?
Protecting property
- Which exemption system applies to me, and what can I protect?
- Is my home or car at risk, and how do liens affect that?
- What happens to property I want to keep that is secured by a loan?
Specific debts
- Are my tax debts dischargeable, and what records do you need to decide?
- What happens to my student loans?
- How are my support obligations treated?
Process and timing
- What is the realistic timeline from filing to discharge?
- What will I need to bring to the 341 meeting?
- What could delay or complicate my case?
Costs and obligations
- What are the fees and costs, and how are they paid in each chapter?
- What must I do to keep my case on track?
- What happens if my income changes during a Chapter 13 plan?
What happens after discharge
- A discharge order releases you from personal liability for discharged debts; creditors on those debts cannot collect from you.
- Some debts survive discharge and remain your responsibility.
- The discharge is a court order; intentionally incurring new debt by misrepresenting your situation is not protected.
- Rebuilding credit takes time. Many people start with a secured card or a small installment account and pay consistently.
- Review your credit reports for accuracy after the case closes.
- Keep your discharge order and case documents in a safe place — you may need them if a creditor improperly tries to collect a discharged debt.
Last legal review: 2026-03-01
Sources: U.S. Courts — Bankruptcy Basics