Source: Federal court records, 4.9 million cases. Explore the data
Not sure which chapter is right for you?
Start with the means test. If you qualify for Chapter 7, it's usually faster and cheaper.
Chapter 7
Chapter 13
The headline number: Chapter 7 has a 93%+ discharge rate. Chapter 13 has roughly a 40-50% discharge rate. If you qualify for Chapter 7 and don't need Chapter 13's specific protections, the data overwhelmingly favors Chapter 7.
What Is Chapter 7 Bankruptcy?
Chapter 7 is a liquidation bankruptcy. A court-appointed trustee reviews your assets, sells any non-exempt property, and your remaining qualifying debts are discharged -- typically within 3 to 4 months. In practice, most Chapter 7 cases are "no-asset" cases where the debtor keeps everything they own because all property falls within state exemption limits.
Chapter 7 eliminates most unsecured debts: credit cards, medical bills, personal loans, utility arrears, and some older tax debts. It does not eliminate student loans (except in rare hardship cases), recent taxes, domestic support obligations, or debts from fraud.
To qualify, you must pass the means test -- a calculation comparing your income to your state's median. If you're below median, you qualify. If above, a detailed expense calculation determines eligibility.
What Is Chapter 13 Bankruptcy?
Chapter 13 is a reorganization bankruptcy. Instead of liquidating assets, you propose a repayment plan lasting 3 to 5 years. Each month, you make a payment to the bankruptcy trustee, who distributes the funds to your creditors. After completing all payments, remaining qualifying debts are discharged.
Chapter 13 is often used by people who:
- Earn too much to pass the Chapter 7 means test
- Are behind on mortgage payments and need to cure arrears to save their home
- Have non-exempt assets they want to protect from liquidation
- Need to repay priority debts like taxes or child support through a structured plan
- Had a recent bankruptcy that bars them from a Chapter 7 discharge under 11 U.S.C. § 727(a)(8)
The appeal is real. But the data shows that Chapter 13's promise frequently does not match the outcome.
The Success Rate Gap
This is the most important comparison between the two chapters, and the one most bankruptcy websites won't tell you:
| Metric | Chapter 7 | Chapter 13 |
|---|---|---|
| Discharge rate (national) | 93%+ | ~40-50% |
| Dismissal rate | <1% | ~30-45% |
| Time to discharge | 3-4 months | 3-5 years |
| Cases analyzed | millions | millions |
What dismissal means for Chapter 13: When a Chapter 13 case is dismissed, the debtor loses all bankruptcy protection, creditors can resume collection, and the debtor may have spent years making monthly payments with nothing to show for it. The attorney fees -- typically $3,000-$5,000 -- are often paid through the plan regardless of outcome. The attorney gets paid. The debtor gets nothing.
Why Is the Chapter 13 Failure Rate So High?
Chapter 13 requires 36 to 60 months of consistent payments. Life happens over 3 to 5 years: job loss, medical emergencies, divorce, car breakdowns. Any of these can cause a debtor to fall behind on plan payments, leading to dismissal.
But the failure rate is not entirely explained by debtor hardship. Research shows that attorney practice patterns -- how cases are screened, how plans are designed, and how actively attorneys manage their cases -- significantly affect outcomes. In some courts, high-volume attorneys (500+ cases) have dismissal rates 15-20 percentage points higher than the same volume tier in neighboring courts.
The question is not just "should I file Chapter 13?" It is also "does my attorney have the infrastructure to see my case through to completion?"
Cost Comparison
| Cost | Chapter 7 | Chapter 13 |
|---|---|---|
| Court filing fee | $338 | $313 |
| Attorney fees (typical) | $1,000-$2,500 | $3,000-$5,000 |
| Credit counseling (2 courses) | $30-$100 | $30-$100 |
| Attorney fee payment | Upfront, before filing | Through the plan (3-5 years) |
| Total typical cost | $1,400-$2,900 | $3,300-$5,400 |
| Cost if case fails | ~$0 (rarely fails) | $3,000-$5,000+ lost |
The hidden cost of Chapter 13 failure: If a Chapter 13 case is dismissed after 2 years, the debtor has typically paid $2,000-$3,000 in attorney fees through the plan, plus thousands more in trustee payments -- all for no discharge. In Chapter 7, the total cost is paid upfront and the 93%+ success rate means the money is almost never wasted.
When to Choose Chapter 7
When to Choose Chapter 13
Waiting Periods: Filing Again After Bankruptcy
If you've filed bankruptcy before, federal law imposes waiting periods before you can receive another discharge. The waiting period depends on which chapter you filed previously and which chapter you're filing now:
| From ↓ To → | Chapter 7 | Chapter 13 |
|---|---|---|
| Chapter 7 | 8 years | 4 years |
| Chapter 13 | 6 years* | 2 years |
*6-year wait can be reduced if the prior Chapter 13 paid 100% of unsecured claims, or 70% under a good-faith plan. Periods measured from filing date to filing date.
What Each Chapter Eliminates
| Debt Type | Chapter 7 | Chapter 13 |
|---|---|---|
| Credit card debt | Discharged | Discharged (after plan) |
| Medical bills | Discharged | Discharged (after plan) |
| Personal loans | Discharged | Discharged (after plan) |
| Mortgage arrears | Not cured | Cured through plan |
| Car loan (if behind) | Surrender or reaffirm | Cure arrears in plan |
| Tax debts (recent) | Not discharged | Repaid through plan |
| Tax debts (older than 3 yrs) | May be discharged | May be discharged |
| Student loans | Rarely discharged | Rarely discharged |
| Child support / alimony | Never discharged | Never discharged |
| Fraud-based debts | Not discharged | Not discharged |
Frequently Asked Questions
About This Data
Statistics on this site are derived from the Federal Judicial Center Integrated Database, which contains records for over 4.9 million bankruptcy cases across all 94 federal districts. Discharge and dismissal rates reflect resolved cases where a final outcome has been reached.
This is an educational resource, not legal advice. Consult a qualified attorney for your specific situation.
Cited in Federal Rules Suggestion 26-BK-3The research methodology behind this data has been submitted to and accepted by the Advisory Committee on Bankruptcy Rules as Rules Suggestion 26-BK-3.