{"id":286907,"date":"2016-04-04T10:41:50","date_gmt":"2016-04-04T15:41:50","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/chapter-7\/reasons-to-file-for-chapter-7-bankruptcy-instead-of-chapter-13.html"},"modified":"2023-11-04T09:44:20","modified_gmt":"2023-11-04T14:44:20","slug":"reasons-to-file-for-chapter-7-bankruptcy-instead-of-chapter-13","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/chapter-7\/reasons-to-file-for-chapter-7-bankruptcy-instead-of-chapter-13.html","title":{"rendered":"Reasons to File for Chapter 7 Bankruptcy Instead of Chapter 13"},"content":{"rendered":"\n
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Reasons to File for Chapter 7 Bankruptcy Instead of Chapter 13<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

When it’s time to file bankruptcy, many people prefer filing Chapter 7 bankruptcy<\/a> instead of Chapter 13. Chapter 7 has many advantages, such as discharging most medical bills, personal loans, and credit card debt.<\/p>\r\n

Read on to explore the advantages of Chapter 7 for debt relief.<\/p>\r\n

Advantages of Chapter 7 Bankruptcy<\/h2>\r\n

Filing for Chapter 7 bankruptcy isn’t for everyone, even though it is popular. Eligibility based on your financial situation is a key factor.<\/p>\r\n

You must qualify by meeting an income test (called the "means test<\/a>"). Additionally, debt is discharged in exchange for giving up valuable nonexempt assets<\/a>. A bankruptcy trustee sells these assets to pay creditors. For this reason, Chapter 7 is sometimes called a liquidation bankruptcy.<\/p>\r\n

Take the time to weigh the pros and cons of different types of bankruptcy, mainly Chapter 7 and Chapter 13 bankruptcy<\/a>.<\/p>\r\n

1. You Receive a Fresh Start<\/h3>\r\n

The Chapter 7 bankruptcy process aims to give you a new start. Eliminating debt<\/a> frees you from personal liability for the discharged debt. However, some types of debt are not dischargeable<\/a>. Non-dischargeable debt includes:<\/p>\r\n