Bankruptcy Comparison Chart Chapter 7 Vs Chapter 13

Type of Debt Chapter 7 Chapter 13
Unsecure debt
Credit card, medical bills, car repossession, personal loans
Most debt is not paid back 0% to 100% paid back – Depends on plan
Secured debt
Can keep vehicle if payments current and equity* position low; if kept, payments made directly to lien holder; can surrender without penalty. If upside down redeem maybe option. Missed payments paid back in plan; if car kept, payments consolidated with other debts; at about 4 to 5% interest,  can surrender vehicle
Secured debt
Can keep house if payments current & equity* position low; if kept, payments made to mortgage company; can surrender without penalty Late payments put in plan; and repaid over 60 months at no interest,  main purpose of chapter 13 is to help keep house; regular payments made to mortgage company after filing
Secured debt
Can usually keep; if kept, payments made to lien holder; can turn in without penalty If kept, late payments and regular payments in plan; can turn in without penalty
Pending lawsuit and garnishments Stopped by filing Stopped by filing
Pending foreclosure Stopped by filing
Harassing phone calls Stopped by filing Stopped by filing
Length Usually over in 4 to 6 months Lasts 3 to 5 years
Filing fee 335.00 paid up front $310.00
Attorney’s fee  Reasonable fees vary based on your situation $3950.00 + paid in plan typically  over – 60 months
Examples Person with several thousand dollars owed in credit card bills and/or medical bills; person facing lawsuit and  garnishment arising from car repossession Person with several months behind on home or car note facing foreclosure or repossession; payment of back taxes
Advantages Gets rid of unsecured debt totally; case concludes in 4-6 months Allows debtor to save house or car when behind; very inexpensive to start case
Disadvantages Attorney’s fees and filing fees  must be paid in full within 60 -90 days of filing; stays on credit report for up to ten years Debt is paid back in payment plan that lasts 3 to 5 years; stays on credit report for seven years