Which is Better – Chapter 7 vs. Chapter 13 Bankruptcy?

Updated 09/2021

The most common types of bankruptcies filed by individuals and small businesses are Chapter 7 bankruptcy and Chapter 13 bankruptcy. There are pros and cons to filing either type of chapter.

Generally, Chapter 7 bankruptcy is:

In Chapter 13 bankruptcy:

  • More costly than Chapter 7, but can be filed with only a small amount paid up front
  • Can be used to catch up mortgage, car payment or other secured debt
  • Takes 3 to 5 years
  • Discharges more debt than Chapter 7
  • Usually, no asset loss
  • Limit on the amount of debt

Ready to find out whether bankruptcy can help you?

Complete ourĀ free, online debt evaluation form or call our office at (903) 759-5922. You can also emailĀ Carol@CrossStone.com. Find out if bankruptcy is your best option and whether it will help you.