A typical Chapter 7 requires no payments and is closed within 6 months, although if your case is an asset case it can remain open much longer to administrator assets to creditors who elect to file a claim.

A typical Chapter 13 usually requires monthly payments for 3-5 years, although many cases are converted to Chapter 7 or dismissed due to non-payment. The debtor also has the right to payoff a Chapter 13 plan in full early, in which creditors are paid 100% of any approved claims. A timeline to discharge for each Chapter is provided below.

Chapter 7 bankruptcy requires all fees to be paid up front whereas Chapter 13 involves monthly payments, usually over 3-5 years. A typical Chapter 7 runs $1,950 total including all attorney fees, filing fees, and mandatory credit counseling. A typical Chapter 13 requires $1,500 upfront and the remainder is paid in monthly payments over 3-5 years. Ir is important to understand the difference between Chapter 7 and Chapter 13 and which is best for you and pros and cons of each bankruptcy chapter.

A Chapter 7 bankruptcy remains on your credit report for 10 years. That is a long time and requires you to be pro-active in rebuilding credit. Credit impacts more than your ability to borrow money. Bad credit can mean higher car insurance rates, higher homeowner insurance rates, or even keep you from getting that new job.  

​Before the “Great Recession” many bankruptcy filers used to get a mailbox full or credit card applications right after filing. The credit card companies were all too eager to sign people back up again when credit was open to anyone with a name.