If you’re considering bankruptcy in Georgia, one of the first questions you’ll face is:
Should I file Chapter 7 or Chapter 13?
While both types offer relief from debt, they serve very different financial situations. Let’s break down the pros and cons of each — and help you decide which path fits your goals.
⚖️ What’s the Difference Between Chapter 7 and Chapter 13?
| Feature | Chapter 7 | Chapter 13 |
|---|---|---|
| Type | Liquidation | Repayment Plan |
| Length | 4–6 months | 3–5 years |
| Income Requirement | Low/No Disposable Income | Enough to make payments |
| Property Risk | Non-exempt assets may be sold | Keep all property (if plan is followed) |
| Stops Foreclosure? | Temporarily | Yes, with repayment |
| Credit Impact | Stays on record for 10 years | Stays for 7 years |
🧾 Chapter 7 Bankruptcy – “Fresh Start” Option
Chapter 7 is ideal for individuals who:
- Have mostly unsecured debt (credit cards, medical bills, personal loans)
- Have little to no assets
- Can’t afford a repayment plan
- Need a quick discharge (usually in a few months)
Benefits of Chapter 7:
- Most debts wiped out completely
- Fast process — typically 90–120 days
- Immediate protection from creditors
Downsides:
- You may lose some non-exempt property (though many people keep everything)
- Doesn’t stop a foreclosure long-term
- Can’t catch up on missed car/house payments
💡 Chapter 13 Bankruptcy – “Repayment Plan” Option
Chapter 13 is best for individuals who:
- Have steady income
- Are behind on mortgage or car payments
- Want to protect their home or vehicle
- Have non-dischargeable debts like taxes or child support
You’ll pay your debts back (or a portion of them) over 3–5 years through a court-approved plan.
Benefits of Chapter 13:
- Stops foreclosure and allows you to catch up on payments
- You keep all property
- Can help with tax debt, driver’s license suspensions, and more
Downsides:
- Must commit to a strict budget for 3–5 years
- Missing payments may lead to case dismissal
- Takes longer to get a discharge
🧠 Which One Is Right for You?
Here’s a quick guide:
- Choose Chapter 7 if:
➤ You’re drowning in unsecured debt and can’t pay anything
➤ You have few valuable assets
➤ You want fast relief - Choose Chapter 13 if:
➤ You have income and want to keep your home or car
➤ You’ve fallen behind on secured debts
➤ You want to consolidate and repay without interest or penalties
📞 Talk to a Local Bankruptcy Attorney in Georgia
Don’t guess — the right choice depends on your income, assets, and goals.
Attorney H. Brooks Cotten has over 30 years of experience helping Georgia residents file bankruptcy and get lasting debt relief.
✅ We’ll evaluate your income, debts, and property
✅ Help you decide which chapter offers the most protection
✅ Guide you through every step
👉 Schedule your free consultation today and find out if Chapter 7 or Chapter 13 is right for you.
