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🆘Debt Relief

Chapter 7 vs Chapter 13 Bankruptcy: Which One Saves You More?

Which bankruptcy chapter saves you more money?

What This Does

Choosing between Chapter 7 and Chapter 13 bankruptcy is one of the most consequential financial decisions you will make — and the wrong choice can cost you tens of thousands of dollars or cause you to lose assets you could have kept. The two chapters serve fundamentally different purposes: Chapter 7 is a liquidation that discharges most unsecured debt in 3 to 6 months, while Chapter 13 is a reorganization that lets you repay some or all debts over 3 to 5 years under court supervision. The decision depends on several overlapping factors. First, eligibility: Chapter 7 requires passing the means test, which compares your income to your state median and calculates disposable income. If you earn too much, Chapter 13 may be your only option. Second, assets: if you have significant non-exempt equity in a home or other valuable assets, Chapter 13 lets you keep everything by paying the value into the plan, while Chapter 7 risks trustee liquidation. Third, mortgage arrears: Chapter 13 is the only chapter that can cure mortgage arrears and stop foreclosure long-term; Chapter 7 cannot. Fourth, specific debts: Chapter 13 can discharge certain debts like marital property settlements that Chapter 7 cannot. This calculator runs a side-by-side financial comparison of both chapters for your exact situation — showing total cost, timeline, monthly obligations, net benefit after attorney fees, and a five-year financial projection — so you can make the decision with numbers, not guesswork.

When Should You Use This?
  • →You qualify for both Chapter 7 and Chapter 13 and want to know which saves more money
  • →You own a home with equity and need to understand which chapter better protects it
  • →You are behind on mortgage payments and evaluating whether Chapter 13 can stop foreclosure
  • →You want to compare the 3-6 month path vs the 3-5 year path with monthly cost projections
  • →You have non-dischargeable priority debts and want to see how each chapter handles them
  • →Your attorney has recommended one chapter but you want to understand the financial trade-offs
Example Scenario

Kevin earns $5,200/month and has $78,000 in unsecured debt, $22,000 in mortgage arrears, and home equity of $55,000 against a $90,000 Ohio homestead exemption. He passes the means test and qualifies for both chapters. The calculator shows Chapter 7 discharges the unsecured debt in 4 months but cannot cure the arrears, risking foreclosure. Chapter 13 costs $1,420/month for 60 months but saves the home, cures arrears, and eliminates the unsecured debt. Chapter 13 wins by $41,000 in total five-year benefit.

Educational tool only. Numbers are estimates based on typical cases. This is not legal advice — consult a licensed bankruptcy attorney before filing. Your actual eligibility and outcomes depend on your state, your specific debts, and your local court.

Chapter 7 vs Chapter 13 Comparison

Costs · Timeline · Debt Relief · Net Benefit Analysis

Results update in real time as you adjust any input.

Income & Means Test

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Debt Profile

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Assets at Risk

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Chapter 13 Plan Parameters

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About This Calculator

This Chapter 7 vs Chapter 13 comparison calculator estimates the financial outcome of each bankruptcy chapter based on your income, debts, assets, and plan parameters. Chapter 7 eligibility is estimated by comparing your monthly income to your state median (with a 5% buffer for means test deductions). Chapter 7 net benefit = unsecured debt discharged minus attorney fee minus filing fee minus trustee fee minus non-exempt assets liquidated. Chapter 13 plan payment = max(disposable income, priority monthly + arrears monthly + at-risk equity monthly). Trustee fee = 10% of total plan payments. Ch13 net benefit = (unsecured + priority + arrears) minus ch13 total cost minus 10% of at-risk equity. Winner = Ch13 if ineligible for Ch7, if arrears exist, or if Ch13 net benefit exceeds Ch7 net benefit by $1,000+. All 12 inputs update in real time.

The Comparison tab renders a RadarChart comparing Chapter 7 and Chapter 13 across 5 dimensions (speed, cost, debt relief, asset safety, arrears fix) plus a grouped bar chart of net benefit, debt discharged, and total out-of-pocket for both chapters. The Costs tab renders a grouped bar chart of 5 cost categories (attorney fee, filing fee, trustee fee, plan payments, asset losses) for both chapters, plus a detailed cost comparison table. The Timeline tab renders a step-line chart of remaining debt over time (Chapter 7 drops to zero after discharge; Chapter 13 declines linearly) plus a line chart of cumulative net benefit accumulation over 60 months (showing when each chapter becomes net positive). The Insights tab shows 4 insights (winner analysis, cost breakdown, debt outcomes, credit impact) and 4 conditional What To Do Next steps based on which chapter wins.

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