Chapter 7 vs. Chapter 13 Bankruptcy: Which One Is Right for You?
by
Brian West on May. 08, 2025
Bankruptcy & Debt Bankruptcy & Debt Bankruptcy Bankruptcy & Debt Credit & Debt
Summary: Struggling with debt? Learn the key differences between Chapter 7 and Chapter 13 bankruptcy, and find out which option suits your financial needs. Brought to you by West Legal Group.
Understanding Chapter 7 and Chapter 13 Bankruptcy
When you’re overwhelmed by debt, filing for bankruptcy can provide much-needed relief. But before you file, it’s important to understand the two most common types of consumer bankruptcy: Chapter 7 and Chapter 13. Each offers unique benefits and limitations depending on your income, assets, and financial goals.
At West Legal Group, we guide clients through every step of the bankruptcy process, ensuring you make the right choice for your situation.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows you to eliminate most unsecured debts quickly. This includes credit cards, medical bills, payday loans, and certain personal loans.
Key benefits of Chapter 7:
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Most unsecured debts are discharged
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Fast process—typically resolved in 3 to 6 months
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No repayment plan
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Available to individuals who pass the Chapter 7 means test
However, some non-exempt property may be sold by a trustee to repay creditors. Still, many filers are able to keep essential assets through exemptions.