Chapter 7 vs Chapter 13
| Feature | Chapter 7 | Chapter 13 |
|---|---|---|
| Duration | ~3-4 months | 3-5 years |
| Payment plan | No | Yes |
| Keep assets | Mostly (exemptions) | Yes |
| Income limit | Means test required | No income limit |
| Credit impact | 10 years on report | 7 years on report |
What Bankruptcy Discharges
- Dischargeable: Credit card debt, medical bills, personal loans, utility bills, some older tax debt
- NOT dischargeable: Student loans (usually), alimony/child support, recent taxes, DUI judgments, fraudulent debts
Filing Costs
- Chapter 7 filing fee: $338
- Chapter 13 filing fee: $313
- Attorney fees: $1,500–$3,500 (Chapter 7), $3,000–$6,000 (Chapter 13)
- Credit counseling certificate: $15–$50 (required before filing)
Disclaimer: This calculator provides a simplified Step 1 analysis only. The full means test involves complex expense calculations. Consult a licensed bankruptcy attorney before making any decisions.
Bankruptcy Filing Realities
U.S. Courts bankruptcy statistics for 2023 recorded 434,422 total filings (personal + business), up 13% YoY after multi-year decline. Chapter 7 (liquidation) accounted for 62% and Chapter 13 (reorganization) 37%. Median filer had assets of $44,800 and liabilities of $87,200 — a 2:1 debt-to-asset ratio. Average attorney fees were $1,450 for Chapter 7 and $3,500 for Chapter 13.
The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) introduced the Means Test: filers whose household income exceeds the state median must pass a disposable-income calculation to qualify for Chapter 7. For 2024, state median household income for a 4-person household ranges from $77,400 (Mississippi) to $141,400 (Massachusetts). Filers above median typically divert to Chapter 13 or face dismissal.
Post-filing outcomes differ sharply. GAO 2022 analysis found Chapter 7 discharged debts in 96% of completed cases, averaging $68,000 in unsecured debt wiped out per filer. Chapter 13 completion rates are only 33% nationally — 67% of filers convert to Chapter 7, dismiss, or fail their payment plan. Student loans remain discharged in only 0.3% of bankruptcy filings due to the stringent 'undue hardship' standard from Brunner v. NY State Higher Ed Services (1987).
Sources: U.S. Courts Bankruptcy Statistics, USTP Means Test Tables, GAO bankruptcy outcomes report
Methodology & Assumptions
This calculator implements standard formulas drawn from primary-source authorities. Values are point-in-time estimates; consult a licensed professional for high-stakes decisions. See the per-input definitions and source citations below.
How this works
Computations are deterministic and run client-side — no inputs leave your
browser. Formulas are derived from
standard published formulas for the calculator's domain (mortgage,
taxes, energy, conversions, etc.). When the underlying agency publishes
updated rates or thresholds we refresh defaults and update the page's
lastmod timestamp.
| Input | Default | Source / authority |
|---|---|---|
| All inputs | Domain-typical defaults | Editorial methodology, CalcMesh 2026 |