Chapter 7 vs Chapter 13 Bankruptcy: Key Differences
Chapter 7 is liquidation and Chapter 13 is a repayment plan. The U.S. Courts’ Bankruptcy Basics pages say Chapter 7 provides for “the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors” and Chapter 13 provides for “adjustment of debts of an individual with regular income”, with payments over “usually three to five years”.
Maintained by Archie Chang · Reviewed November 2, 2026 · Methodology & sources
“Because bankruptcy can have serious long-term financial and legal consequences, including loss of your property, you should hire an attorney and carefully consider all of your options before you file.”
Chapter 7 and Chapter 13 side by side
Each cell quotes the U.S. Courts, the U.S. Code or the Judicial Conference notice, with its citation. Amounts carry the date of the document that prints them.
| Topic | Chapter 7 | Chapter 13 |
|---|---|---|
| Who can file | “the debtor may be an individual, a partnership, or a corporation or other business entity.” | “Only an individual with regular income that owes, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts of less than […] may be a debtor under chapter 13 of this title.” The debt amounts in that sentence are adjusted by the notice quoted in the debt limits row. |
| Means test | “If the debtor's "current monthly income" is more than the state median, the Bankruptcy Code requires application of a "means test" to determine whether the chapter 7 filing is presumptively abusive.” Chapter 7 uses Official Form 122A-1 (Chapter 7 Statement of Your Current Monthly Income). | “A debtor’s income level will determine the length of the plan, which will usually be either 3 or 5 years.” Chapter 13 uses Official Form 122C-1 (Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period). |
| Liquidation or repayment plan | “This chapter of the Bankruptcy Code provides for "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.” “In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets.” | “Chapter 13 of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.” |
| Plan length | “A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13.” | “If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause."” “If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years.” The statute text is in the plan length section. |
| Debt limits | “Subject to the means test described above for individual debtors, relief is available under chapter 7 irrespective of the amount of the debtor's debts or whether the debtor is solvent or insolvent.” | “Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual's unsecured debts are less than $526,700 and secured debts are less than $1,580,125 as of the date of filing for bankruptcy relief.” “The dollar amounts are adjusted on April 1, 2025.” “This adjustment does not apply with respect to cases commenced before April 1, 2025.” |
| Filing fees | “The courts must charge a $245 case filing fee, a $75 miscellaneous administrative fee, and a $15 trustee surcharge.” Bankruptcy Basics lists a $75 administrative fee and the fee schedule lists $78; each document is in the fee table with its date. | “The courts must charge a $235 case filing fee and a $75 miscellaneous administrative fee.” |
| Credit counseling | “Subject to paragraphs (2) and (3), and notwithstanding any other provision of this section other than paragraph (4) of this subsection, an individual may not be a debtor under this title unless such individual has, during the 180-day period ending on the date of filing of the petition by such individual, received from an approved nonprofit budget and credit counseling agency described in section 111(a) an individual or group briefing […]” “There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling.” | |
| Time between discharges | “The court shall grant the debtor a discharge, unless […] (8) the debtor has been granted a discharge under this section, under section 1141 of this title, or under section 14, 371, or 476 of the Bankruptcy Act, in a case commenced within 8 years before the date of the filing of the petition;” “(9) the debtor has been granted a discharge under section 1228 or 1328 of this title, or under section 660 or 661 of the Bankruptcy Act, in a case commenced within six years before the date of the filing of the petition, unless payments under the plan in such case totaled at least […]” | “Notwithstanding subsections (a) and (b), the court shall not grant a discharge of all debts provided for in the plan or disallowed under section 502, if the debtor has received a discharge— |
Filing fees: the documents differ
The fee schedule and the Bankruptcy Basics pages print different administrative fees ($78 and $75). Each document is shown with its date; totals marked as arithmetic are our own sums of the printed amounts.
| Document | Date | Chapter 7 | Chapter 13 |
|---|---|---|---|
| 28 U.S.C. § 1930(a)(1), filing fee | Text current through Public Law 119-136 (October 22, 2026) | $245 | $235 |
| Bankruptcy Court Miscellaneous Fee Schedule, administrative fee and trustee surcharge | Effective December 1, 2023 | $78 administrative fee + $15 trustee surcharge | $78 administrative fee |
| Arithmetic from the two rows above: filing fee + administrative fee + trustee surcharge | Our calculation from those documents | $245 + $78 + $15 = $338 | $235 + $78 = $313 |
| Official Forms instructions, Notice Required by 11 U.S.C. § 342(b) (Form 2010) | December 2015 (Rev. April 2025), as printed on the booklet cover | $338 total fee ($245 + $78 + $15) | $313 total fee ($235 + $78) |
| Bankruptcy Basics pages (Chapter 7 and Chapter 13) | Undated page, read November 2, 2026 | $245 filing fee, $75 administrative fee, $15 trustee surcharge | $235 filing fee, $75 administrative fee |
“(a) The parties commencing a case under title 11 shall pay to the clerk of the district court or the clerk of the bankruptcy court, if one has been certified pursuant to section 156(b) of this title, the following filing fees:
(1) For a case commenced under—
(A) chapter 7 of title 11, $245, and
(B) chapter 13 of title 11, $235.”
“Administrative fee:
For filing a petition under Chapter 7, 12, or 13, $78.”
“For payment to trustees pursuant to 11 U.S.C. § 330(b)(2), a $15 fee applies in the following circumstances:
For filing a petition under Chapter 7. […]”
“Normally, the fees must be paid to the clerk of the court upon filing. With the court's permission, however, individual debtors may pay in installments.”
“Normally the fees must be paid to the clerk of the court upon filing. With the court's permission, however, they may be paid in installments.”
“If the debtor's income is less than 150% of the poverty level (as defined in the Bankruptcy Code), and the debtor is unable to pay the chapter 7 fees even in installments, the court may waive the requirement that the fees be paid.”
The Bankruptcy Court Miscellaneous Fee Schedule (effective December 1, 2023) lists no trustee surcharge for a Chapter 13 petition.
The Chapter 7 fee waiver wording refers to the poverty level; see the federal poverty level calculator for the guideline figures.
Plan length: the statute text
“If the current monthly income of the debtor and the debtor's spouse combined, when multiplied by 12, is not less than […] the plan may not provide for payments over a period that is longer than 5 years.”
“If the current monthly income of the debtor and the debtor's spouse combined, when multiplied by 12, is less than […] the plan may not provide for payments over a period that is longer than 3 years, unless the court, for cause, approves a longer period, but the court may not approve a period that is longer than 5 years.”
“For purposes of this subsection, the 'applicable commitment period'—
(A) subject to subparagraph (B), shall be—
(i) 3 years; or
(ii) not less than 5 years, if the current monthly income of the debtor and the debtor's spouse combined, when multiplied by 12, is not less than […]”
“may be less than 3 or 5 years, whichever is applicable under subparagraph (A), but only if the plan provides for payment in full of all allowed unsecured claims over a shorter period.”
The median income figures those sections refer to come from the U.S. Trustee Program table. The bankruptcy means test calculator shows the whole table and the wording of Official Forms 122A-1 and 122C-1 for the numbers entered.
What this comparison leaves to the court and to state law
“Thus, whether certain property is exempt and may be kept by the debtor is often a question of state law.”
Exemptions, which debts are discharged, the exceptions to the credit counseling requirement in 11 U.S.C. § 109(h), and the other paragraphs of § 727(a) are decided case by case. This page does not apply them to anyone’s facts.
Related FedRateCalc pages
- Offer in compromise (the IRS program for settling a tax debt)
- IRS payment plan calculator (IRS installment agreements)
- IRS tax lien (what the IRS says about federal tax liens)
- IRS Fresh Start program (IRS collection relief programs)
- Federal poverty level calculator (the poverty guidelines that the Chapter 7 fee waiver wording refers to)
Frequently asked questions
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
When we checked on November 2, 2026, the U.S. Courts’ Bankruptcy Basics page for Chapter 7 said the chapter “provides for "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors”. The U.S. Courts’ Bankruptcy Basics page for Chapter 13 said that chapter “provides for adjustment of debts of an individual with regular income” and “allows a debtor to keep property and pay debts over time, usually three to five years”.
What are the Chapter 13 debt limits?
When we checked on November 2, 2026, the U.S. Courts’ Bankruptcy Basics page for Chapter 13 said: “Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual's unsecured debts are less than $526,700 and secured debts are less than $1,580,125 as of the date of filing for bankruptcy relief”. The Judicial Conference notice published in the Federal Register on February 4, 2025 (90 FR 8941) said “The dollar amounts are adjusted on April 1, 2025” and “This adjustment does not apply with respect to cases commenced before April 1, 2025”.
How much does it cost to file Chapter 7 or Chapter 13?
28 U.S.C. § 1930(a)(1) lists a $245 filing fee for Chapter 7 and $235 for Chapter 13. The Bankruptcy Court Miscellaneous Fee Schedule, effective December 1, 2023, lists a $78 administrative fee for a Chapter 7 or Chapter 13 petition and a $15 trustee surcharge for a Chapter 7 petition. Adding them gives $338 for Chapter 7 and $313 for Chapter 13 (our arithmetic). The U.S. Courts’ Bankruptcy Basics pages list a $75 administrative fee, which differs from the fee schedule.
What is the bankruptcy means test?
The U.S. Courts’ Bankruptcy Basics page for Chapter 7 said, when we checked on November 2, 2026: “If the debtor's "current monthly income" is more than the state median, the Bankruptcy Code requires application of a "means test" to determine whether the chapter 7 filing is presumptively abusive”. When we checked on November 2, 2026, the U.S. Trustee Program said the Bankruptcy Code “requires application of a "means test" to determine whether individual consumer debtors may obtain relief under chapter 7”.
How long is a Chapter 13 plan?
Under 11 U.S.C. § 1322(d)(2), if “the current monthly income of the debtor and the debtor's spouse combined, when multiplied by 12, is less than” the applicable median for the household, the plan “may not provide for payments over a period that is longer than 3 years, unless the court, for cause, approves a longer period, but the court may not approve a period that is longer than 5 years”. Under § 1322(d)(1) the plan “may not provide for payments over a period that is longer than 5 years” when that combined figure “is not less than” the applicable median. The U.S. Courts’ Bankruptcy Basics page for Chapter 13 said the plan “generally must be for five years” when income is greater than the applicable state median.
Is credit counseling required before a bankruptcy filing?
11 U.S.C. § 109(h)(1) says: “Subject to paragraphs (2) and (3), and notwithstanding any other provision of this section other than paragraph (4) of this subsection, an individual may not be a debtor under this title unless such individual has, during the 180-day period ending on the date of filing of the petition by such individual, received from an approved nonprofit budget and credit counseling agency described in section 111(a) an individual or group briefing”. The statute text continues with a description of the briefing and with exceptions.
How long must a person wait between bankruptcy discharges?
11 U.S.C. § 727(a)(8) says: “The court shall grant the debtor a discharge, unless […] (8) the debtor has been granted a discharge under this section, under section 1141 of this title, or under section 14, 371, or 476 of the Bankruptcy Act, in a case commenced within 8 years before the date of the filing of the petition;” and § 727(a)(9) says: “(9) the debtor has been granted a discharge under section 1228 or 1328 of this title, or under section 660 or 661 of the Bankruptcy Act, in a case commenced within six years before the date of the filing of the petition, unless payments under the plan in such case totaled at least […]” 11 U.S.C. § 1328(f) says: “Notwithstanding subsections (a) and (b), the court shall not grant a discharge of all debts provided for in the plan or disallowed under section 502, if the debtor has received a discharge— (1) in a case filed under chapter 7, 11, or 12 of this title during the 4-year period preceding the date of the order for relief under this chapter, or (2) in a case filed under chapter 13 of this title during the 2-year period preceding the date of such order.”
When we checked on November 2, 2026, each source below was read at the address shown. More on this topic: Bankruptcy Means Test Calculator (Median Income by State).
Sources
- U.S. Trustee Program: Means Testing
- U.S. Trustee Program: Means Testing, cases filed on or after July 15, 2026
- U.S. Trustee Program: Census Bureau Median Family Income By Family Size (July 15, 2026)
- Official Form 122A-1, Chapter 7 Statement of Your Current Monthly Income (12/19), PDF
- Official Form 122A-1 page (uscourts.gov)
- Official Form 122A-1Supp (12/15), PDF
- Official Form 122C-1 (10/19), PDF
- Official Form 122C-1 page (uscourts.gov)
- Instructions for bankruptcy forms for individuals (PDF)
- U.S. Courts: Chapter 7 - Bankruptcy Basics
- U.S. Courts: Chapter 13 - Bankruptcy Basics
- U.S. Courts: Bankruptcy Court Miscellaneous Fee Schedule
- Federal Register: 90 FR 8941, Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases
- 11 U.S.C. § 101 (current monthly income, median family income)
- 11 U.S.C. § 109 (who may be a debtor)
- 11 U.S.C. § 707 (dismissal; means test)
- 11 U.S.C. § 727 (Chapter 7 discharge)
- 11 U.S.C. § 1322 (contents of the plan)
- 11 U.S.C. § 1325 (confirmation; commitment period)
- 11 U.S.C. § 1328 (Chapter 13 discharge)
- 28 U.S.C. § 1930 (bankruptcy fees)