Statutory basis
Chapter 7 of the Bankruptcy Code (11 U.S.C. §§ 701–784) governs liquidation proceedings. A court-appointed trustee collects and liquidates non-exempt assets, distributes proceeds to creditors, and the debtor receives a discharge of most unsecured debts within about four to six months of filing.
Chapter 13 (11 U.S.C. §§ 1301–1330) governs adjustment of debts for a debtor with regular income. The debtor proposes a three- to five-year repayment plan, which the court confirms after a confirmation hearing. The discharge is entered after plan payments are completed.
11 U.S.C. § 109 sets chapter-specific eligibility: § 109(b) identifies who may be a debtor under Chapter 7; § 109(e) caps unsecured and secured debt for Chapter 13 eligibility (adjusted every three years under § 104).
Case-length and structure differences
- Chapter 7 cases typically close in 3 to 6 months. Non-exempt property is liquidated by the trustee; the debtor's post-petition earnings are not part of the estate.
- Chapter 13 cases run 36 or 60 months under a confirmed plan. Plan payments come from the debtor's post-petition disposable income, and the discharge enters only after all plan payments are made.
- Chapter 13 cases can cure mortgage arrears over the plan period while the automatic stay (§ 362) prevents foreclosure. Chapter 7 generally cannot cure arrears.
- Both chapters impose an automatic stay on filing (§ 362(a)), which halts most collection activity, civil litigation enforcement, and secured-creditor actions.
Discharge scope
The scope of the discharge is one of the most consequential differences between the two chapters. Chapter 13 discharges a slightly broader set of debts than Chapter 7, though the § 523(a) non-discharge list still applies in both.
- § 523(a) carve-outs from discharge (in both chapters): certain tax debts, domestic-support obligations, student loans absent an undue-hardship finding under the Brunner standard, debts arising from fraud or willful injury, and others.
- The Chapter 13 "super-discharge" historically covered certain non-tax fraud-based debts. Post-BAPCPA (2005), § 1328(a) narrowed this, and the gap between Chapter 7 and Chapter 13 discharge scope is smaller than it once was.
- § 727(a) bars a Chapter 7 discharge altogether if the debtor has received a prior Chapter 7 discharge within 8 years, or a prior Chapter 13 discharge within 6 years in certain configurations.
- § 1328(f) imposes parallel timing bars on Chapter 13 discharges based on prior discharges.
Filing volume and chapter mix by district
The ratio of Chapter 7 to Chapter 13 filings varies significantly by district. Some districts have majority Chapter 13 filing volumes; others have majority Chapter 7. Local practice, economic conditions, and means-test eligibility drive most of the variance. The Open Bankruptcy Project publishes chapter-mix statistics for every US federal bankruptcy district.
Case dispositions
The Federal Judicial Center's Integrated Database records a terminal disposition code for cases it has coded (code A: discharged; codes D–T: various dismissals; code K: converted to another chapter; plus miscellaneous closings). Disposition coverage in the IDB varies by cohort, because the IDB is a periodic snapshot rather than a continuous outcome tracker.
Chapter 13 cases face a higher dismissal risk than Chapter 7 because they require sustained plan performance over 3–5 years. Missed payments, changes in employment, and plan modifications can result in dismissal under § 1307. Chapter 13 cases that don't complete to discharge may be converted to Chapter 7 under § 1307(a) or dismissed.
Choosing between chapters
Chapter choice depends on a debtor's income, asset profile, types of debt, and goals (liquidation vs. reorganization). The means test (§ 707(b)) restricts Chapter 7 eligibility for debtors with above-median income. Debt caps under § 109(e) restrict Chapter 13 eligibility for debtors with very large secured or unsecured balances.
This page is empirical, not advisory. For a chapter-choice analysis in a specific matter, consult a licensed bankruptcy attorney admitted in the applicable district. The Open Bankruptcy Project's free discharge-eligibility screener checks § 1328(f) and § 727(a) timing bars against a user-supplied filing history.
Related resources
National District Index
Filing volume and chapter mix for every US federal bankruptcy district.
Discharge-eligibility screener
Free § 1328(f) / § 727(a) timing-bar check based on filing history.
Automatic stay explained
Scope and exceptions of § 362 — what protection bankruptcy provides and when it lifts.
The means test
§ 707(b) income thresholds, how the test is computed, and what "above-median" means.
Frequently asked questions
What is the main difference between Chapter 7 and Chapter 13?
Chapter 7 is a liquidation in which non-exempt assets are sold by a trustee and most unsecured debts are discharged within a few months. Chapter 13 is a reorganization under a three- to five-year repayment plan, with the discharge entered only after plan completion.
How long does a Chapter 7 case take?
A typical Chapter 7 case closes in approximately 3 to 6 months from filing, though no-asset cases often close sooner and cases with asset liquidation or disputes can take longer.
Can I file Chapter 7 if I have a prior bankruptcy discharge?
11 U.S.C. § 727(a)(8) bars a Chapter 7 discharge if the debtor received a prior Chapter 7 discharge within 8 years before the current petition. § 727(a)(9) addresses prior Chapter 13 discharges. The Open Bankruptcy Project's screener checks these timing bars against a supplied filing history.
What debts are not discharged in bankruptcy?
11 U.S.C. § 523(a) lists categories of non-dischargeable debts, including most tax debts, domestic-support obligations, student loans absent an undue-hardship finding, debts arising from fraud or willful injury, and others.
Can I keep my house in bankruptcy?
Chapter 13 plans can cure mortgage arrears and prevent foreclosure during the plan period. Chapter 7 does not provide a cure mechanism for mortgage arrears. Whether a home's equity is protected depends on the applicable state or federal exemption scheme.
Where can I find statistics on chapter mix by district?
The Open Bankruptcy Project publishes a free national district-level data index covering all 94 federal bankruptcy courts with filing volumes, chapter mix, and disposition statistics sourced from the Federal Judicial Center Integrated Database.