Difference between Chapter 7 Chapter 13 bankruptcy

Falling into debt can be overwhelming, especially when you can’t find a way out. Things can spiral out of control, leaving you feeling stressed and hopeless. However, there is hope. Bankruptcy can be a way to establish a clean slate and get a fresh start on your finances. Learning the critical differences between Chapter 7 and Chapter 13 bankruptcy can help you decide if this is the right path forward and Mr. Crawley will walk through the process with you.

How Does Chapter 7 Bankruptcy Work?

When people think about personal bankruptcy, they most likely think of Chapter 7. This is the most common form used and provides an immediate clean slate. However, there are potential drawbacks to this approach.

When you submit a Chapter 7 bankruptcy filing, the court orders your creditors to cease collection efforts. Once your bankruptcy is approved and discharged, qualifying debts are discharged. Medical bills, credit card balances, and unsecured loans are examples of what might be considered a qualifying debt.

Who Is It For?

It is a good idea to consult an experienced bankruptcy attorney to decide if Chapter 7 bankruptcy is right for you. However, it may be a good choice if most of your debt is unsecured.

Chapter 7 bankruptcy is means tested, meaning you must be financially unable to pay your debts. Additionally, the discharge of debts through this method is available to individuals but not corporations or partnerships.

How Does Chapter 13 Bankruptcy Work?

One of the significant differences between Chapter 7 and Chapter 13 bankruptcy is that debts are not discharged with the latter. Instead, you will develop a repayment plan for existing debts. This is carried out over three or five years, depending on your income and situation.

Because you are not asking for debt elimination, there is no risk of losing property in a Chapter 13 bankruptcy filing. However, property values will be considered in developing your repayment plan.

Who Is It For?

Individuals with a steady income sufficient to repay existing debts over time may benefit from a Chapter 13 bankruptcy filing. It can be an excellent way to restructure debt and get back in control in some situations, such as if you have fallen behind on mortgage payments.

Compassionate Help with Bankruptcy Filing

Bankruptcy is a viable option for regaining control over your finances. However, it is not a decision to be made lightly. At Crawley Law Firm, we understand that each situation is unique. We will work with you to determine the best approach to debt relief. When we help you file for bankruptcy protection, you’ll be enrolled in our unique 14-week credit rebuilding program, “7 Steps to a 720,” designed to help you rebuild your credit for a stronger financial future. Contact our office at (870) 972-1150 for your free consultation.


Crawley Law Firm, PA

Customer Reviews

Debbie V. 03/20/2023

Great experience very fast wonderful people to work with.

Shannon W. 03/21/2023

Professional, Helpful, and Kind. I would recommend to anyone. Thank you

Tanya 2/15/2023

Mr. Crawley and the staff were very kind and knowledgeable to me during my Bankruptcy period. They did an awesome job. They were quick to respond to all messages, calls, and inquires. I would definitely recommend Crawley Law Firm to anyone in need of help with your legal issues.

Casey 02/08/23

Mr Crawley and husband staff were very kind and knowledgeable to me during the trying time that is bankruptcy. They were quick to respond to all messages, calls, and inquires. I recommend them to anyone in need of help with your legal issues.

H Barnes

Awesome. Answered every question each time all the time. Be prepared when you walk into his office because they're already waiting to tackle your issues. Good staff too. This lawyer gets this thang done. Have your ducks in a row.. They will help you all the way.

Mr. and Mrs. Dowdy 08/19/2022

We want to personally thank Mr. Crawley and his staff for everything. We want the whole office know we appreciate each of you for being kind and having patience with us throughout the process.

C. Henley

I have been struggling with coming to this decision to file bankruptcy, but you have made me feel comfortable through this process! Thank you for being so great with clients! You are a rockstar in my book! This is terrifying but you all have made it better! Thank you for all your help!!

Terri B. 01/20/22

I would definitely recommend Crawley Law Firm. They were informative and very patient all the way through. I could always call with any other questions. Juliana was great! Michael and all of his staff were very professional and understanding all the way!

Robert N. 01/17/22

Very responsive very respectful, and competitive on price. Always answered my questions with honor. Thanks Crawley team.

Sherry S. 01/12/22

Awe ty for always making me feel better. You are good people and I can't tell you how every single thing u have ever said or done u and ur hubs has helped us in some way. And this bankruptcy stuff is serious and ya'll take such good care of us and we appreciate you!