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Chapter 7 vs. Chapter 13 Bankruptcy Comparison

Often times we are asked to explain the differences between a Chapter 7 and Chapter 13 bankruptcy. This page is dedication to providing bankruptcy comparison of these common filing chapters.

While these two types of bankruptcy are the primary types of bankruptcy filings, there are significant differences between the two chapters.

Key differences include the length of time you will be in bankruptcy, the ability to address unsecured debt interest free, address tax debt and keep your home.

We invite you to review the bankruptcy comparison below or for more information on filing bankruptcy in Pennsylvania, schedule a FREE consultation using our web form.

Chapter 7 Bankruptcy  

A Chapter 7 bankruptcy allows individuals to discharge most or all of their unsecured debt in order to get their financial situation under control. Unsecured debt includes credit cards, personal loans, lawsuits, medical bills, utility bills and even some types of unpaid taxes. For the most part, those who are current with their mortgage payments and vehicle payments find this to be the appropriate solution to their  financial problems.

Chapter 7 Advantages

Additionally, filing for Chapter 7 bankruptcy has many advantages. First, a successful filing can eliminate your legal liability to repay your unsecured debts. Next, upon filing of the bankruptcy petition, creditors and collection agencies are prohibited from contacting and harassing you for your debt.

Moreover, all legal action must cease. For this reason, Chapter 7 bankruptcy is extremely advantageous. Creditor harassment is one of the worst effects of having unpaid debt. Furthermore, Chapter 7 can also stop execution sales, frozen bank accounts, and eliminate liens on your property.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a debt repayment plan for individuals. It allows individuals to protect a house from foreclosure while catching up on past-due mortgage payments. It also allows individuals to reduce debts by paying a discounted amount over time. The repayment plan is created to repay a specified amount to creditors for a period of three to five years. At the end of the plan, all eligible debts are discharged.

Chapter 13 is a forum where secured debts, such as car loans or second mortgages, can be appropriately addressed. Sometimes second mortgages can be eliminated altogether. Vehicle payments can usually be drastically modified or reduced in Chapter 13. The Chapter 13 reorganization my also be  attractive.


Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
I have referred several friends and family to Foster Law Offices ( DAN FOSTER ) is very professional and understanding of what you are going thru and will work with you to get thru your hard times with bankruptcy.
Rachel Calvert

Meadville, PA

Benefits of Bankruptcy

We can STOP a pending lawsuit.

We can STOP the harassing phone calls.

We can STOP a wage garnishment.

FREE Consultation with a licensed bankruptcy attorney.

We can STOP a pending repossession.

We can help you get the NEW START you DESERVE.

Contact Us


1210 Park Avenue, Meadville, PA 16335