Chapter 7 wipes debt out. Qualifying debts are erased, usually in about three months, and there’s no repayment plan.
Chapter 13 reorganizes it. Everything gets folded into one monthly payment over three to five years — which is what lets you catch up on a house or car you’ve fallen behind on.
Five minutes. Here’s everything you actually need to know before your consultation.
What does Chapter 7 do?
It erases debt. That’s the whole idea.
Credit cards, medical bills, personal loans — the debts that qualify get discharged, meaning legally gone. Not reduced, not renegotiated. Gone.
- Usually finished in about three months
- No payment plan to creditors afterward
- Most people keep their everyday property through Nevada’s exemptions
- Creditor calls stop the day you file
It’s the fastest, cleanest option — which is why it’s what most people picture when they think “bankruptcy.”
What does Chapter 13 do?
It buys you time and structure instead.
Rather than erasing what you owe, Chapter 13 rolls it into a single monthly payment over three to five years, under the court’s protection. At the end, remaining qualifying balances are discharged.
- Stops a foreclosure and lets you catch up on missed mortgage payments
- Lets you catch up on a car loan instead of losing the car
- Protects property that Chapter 7 exemptions wouldn’t fully cover
- One payment, court-supervised, instead of a dozen creditors calling
Chapter 13 is the tool when you’re not just trying to get rid of debt — you’re trying to hold onto something while you deal with it.
How do I know which one I qualify for?
Chapter 7 has an income requirement. Chapter 13 generally doesn’t, but it does require steady income to fund the plan.
The short version: if your household income is below Nevada’s median for your family size, Chapter 7 is usually available. If it’s above, there’s a calculation called the means test that looks at your actual expenses to see whether you still qualify.
Plenty of people assume they earn too much and are wrong. The means test accounts for real-world expenses, and the outcome surprises people in both directions. It takes us a few minutes to run.
So which one is better?
Neither. They’re different tools for different problems.
And here’s the part a website genuinely can’t do for you: figuring out which one fits your situation takes an attorney looking at your actual numbers.
Not a flowchart. Not an online quiz. A person who asks about the things that never show up in a comparison chart — whose name is on the car title, what you’ve already paid down, whether a second mortgage changes the math, what you’re actually trying to hold onto.
That’s exactly what the free consultation is for. Fifteen minutes, one licensed attorney, your specific situation — and a straight answer about which chapter fits you, not which one fits people in general.
Being straight with you: sometimes the answer is neither. If your situation would be better handled by negotiating with creditors or simply waiting, we’ll tell you that — even though it means we don’t get hired.
What do they cost?
At Discount Lawyers:
- Chapter 7 — an easy monthly payment plan covering attorney’s fees and court costs together
- Chapter 13 — a simple down payment to get started, with the balance of attorney’s fees paid through your repayment plan
That second one surprises people, so it’s worth explaining: in a Chapter 13, most of the attorney’s fee gets paid through the plan itself rather than upfront. That’s how the chapter is designed — and it’s why we can get your case started on a modest down payment even when there’s nothing in the bank.
Current figures for both chapters are posted on our bankruptcy page.
Either way, you get the number in writing before you commit to anything.
Common questions
Can I choose whether to file Chapter 7 or Chapter 13?
Partly. Chapter 7 has income eligibility requirements, so not everyone qualifies. If you do qualify for both, you can choose — and the right answer usually depends on whether you’re trying to protect a home or vehicle you’ve fallen behind on.
Which is cheaper, Chapter 7 or Chapter 13?
Chapter 7 usually costs less overall, because the case is shorter and there’s no multi-year repayment plan. At Discount Lawyers, Chapter 7 runs on an easy monthly payment plan covering attorney’s fees and court costs together, while Chapter 13 starts with a simple down payment and the balance paid through your plan.
Can I switch from Chapter 13 to Chapter 7?
In many situations, yes. Converting between chapters is possible when circumstances change, though eligibility rules still apply. If your income drops during a Chapter 13 plan, converting is worth discussing with your attorney.