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There are two different types of consumer bankruptcy – Chapter 7 and Chapter 13. If you are deciding if bankruptcy will work for you, or determining which type of bankruptcy will best meet your needs, take the time to learn about both Chapter 7 and Chapter 13.
In Chapter 7 bankruptcy, commonly called “liquidation” bankruptcy, you discharge most or all of your debts. However, you may have to give up some of your property (although most debtors keep most of their property).
In Chapter 13 bankruptcy, commonly called “reorganization” bankruptcy, you keep your property. However, you must repay some debts in full, and others in part through a repayment plan that lasts either three or five years.
Overview Articles
Learn the basics of how Chapter 7 bankruptcy works.
Learn the basics of how Chapter 13 bankruptcy works.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) made many substantial changes to bankruptcy law and procedures. Learn about them here.
Learn about the bankruptcy discharge: a court order, issued at the end of a bankruptcy case, that erases most or all of the filer's debts.
Where to find the federal law governing bankruptcy.
Find out what secured, unsecured, and priority debt are, and how they are treated in bankruptcy.
More on Chapter 7 and Chapter 13
Click on the links below to find articles, Q&As, and more.
Chapter 7 vs. Chapter 13: Which Is Better?
Decide which is better in your situation: Chapter 7 or Chapter 13 bankruptcy.
Find out if Chapter 13 might be best in your situation.
Learn when Chapter 7 bankruptcy might be better for you than Chapter 13 bankruptcy.
For most small business owners, Chapter 7 bankruptcy is a better option. But in some situations, Chapter 13 bankruptcy is the way to go.
For Small Business Owners
Both Chapter 7 and Chapter 13 bankruptcy can be used by debtors with unmanageable business debts.
Visit our Small Business Bankruptcy Center for articles on using bankruptcy for your business.
Related Products
The New Bankruptcy: Will It Work for You?
Is bankruptcy the right solution for your overwhelming debts? Pick the best strategies for your situation with the information and practical suggestions in this book by best-selling author Stephen Elias.
Is bankruptcy the right solution for your overwhelming debts? Pick the best strategies for your situation with the information and practical suggestions in this book by best-selling author Stephen Elias.
How to File for Chapter 7 Bankruptcy
The reliable, up-to-date information in this best-selling book will help you successfully complete your bankruptcy claim without breaking the bank.
The reliable, up-to-date information in this best-selling book will help you successfully complete your bankruptcy claim without breaking the bank.
Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time
This comprehensive guide explains the Chapter 13 process, from start to finish.
This comprehensive guide explains the Chapter 13 process, from start to finish.