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ProPublica logo, Bankruptcy: What’s the essential difference between Chapter 7 and Chapter 13?

ProPublica logo, Bankruptcy: What’s the essential difference between Chapter 7 and Chapter 13?

Key differences when considering the chapters make selecting the most appropriate one crucial for success. Making use of our analysis, we explain the way they work and just how people fare under each.

Sept. 27, 2017, 8 a.m. EDT

Series: Too Broke for Bankruptcy

Just Exactly Exactly How Bankruptcy Fails People Who Require It Many

The 2 primary bankruptcy choices accessible to individuals inundated by unsecured debt are Chapter 7 or Chapter 13. Your options vary significantly in how they work as well as the relief they offer. Here are the fundamental characteristics of each and every chapter, along with data drawn from ProPublica’s analysis of bankruptcy filings from 2008-2015 to exhibit what kinds of debtors are going for each chapter and exactly how effective these are generally at having their debts wiped away or released. This guide is a component of our series on bankruptcy, which takes an in depth, critical go through the system and its own shortcomings.

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