Chapter 7 Vs. Chapter 13 Bankruptcy

What Is The Difference?

One of the initial questions people ask when facing debt and considering bankruptcy involves the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Attorneys from all levels of experience and knowledge will seek your business and tell you they can offer you exceptional legal help.

But only trust your bankruptcy care to a professional with extensive experience. At McCune Zenner Happell, PLLC, we have that experience — 40 years. We represent clients in Brentwood and Williamson County, as well as in Nashville and Middle Tennessee.

At MZH, we know that you are struggling with debt and that you probably find the bankruptcy process confusing. It's OK. We are here to explain your options and help you get the results you need.

Debt Relief Plan Vs. Debt Repayment Plan

In many ways, the question of Chapter 7 vs. Chapter 13 revolves around the type of debt involved and the type of solution provided:

  • Chapter 7 — relief plan: Chapter 7 is focused more on unsecured debts — debts that are not backed by any big ticket items like a home or car, like medical debts, credit card debts, etc. — and it provides more immediate relief. In Chapter 7, clients discharge as much debt as possible and move on with a fresh start.
  • Chapter 13 — repayment plan: Generally, Chapter 13 focuses more on bigger, secured debt on assets like houses, cars and other large purchase items. Chapter 13 does not offer the immediate relief that Chapter 7 provides, rather it gives clients a three-year or five-year repayment period with modified payment structures that debtors can handle.

Many people who come to us seek Chapter 13 rather than Chapter 7. There is something about the opportunity to pay back at least part of the debt that people appreciate. Our lawyers will work with you to determine the best available option for your unique situation.

Contact MZH ∙ Get The Help You Need

Whether you go with a Chapter 7, Chapter 13 or some other debt relief option, our attorneys will be with you every step of the process to understand your options and make smart decisions for your financial future.

Call us at 615-953-8337 (615-425-FIRM) or email us. We offer free consultations, so there is no risk in talking with our lawyers.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.