The Brown Law Firm — Jerome A. Brown, Board Certified Attorney in Consumer Bankruptcy Law and Business Bankruptcy Law by the Texas Board of Legal Specialization — 40+ Years Legal Experience
Bankruptcy Reorganization
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a court-supervised repayment plan under 11 U.S.C. § 1322 for individuals with regular income, typically lasting three to five years. Unlike Chapter 7, it lets you stop a pending foreclosure or vehicle repossession and catch up on missed mortgage or vehicle payments over time while keeping the property. Remaining eligible debts are discharged once the plan is complete.
Sometimes, a Chapter 7 Bankruptcy is not the best option for you. A Chapter 13 Bankruptcy provides another avenue for you to discharge debts.
When Chapter 13 is right for you
Chapter 13 does things Chapter 7 cannot. It is most useful when one or more of the following is true:
- You are facing foreclosure or vehicle repossession and want to keep your home or vehicle. Chapter 13 stops a pending foreclosure or repossession the moment you file, and lets you catch up on missed mortgage or vehicle payments through the repayment plan while keeping your home and vehicle.
- You have non-dischargeable debt you need to pay over time. Certain tax obligations and domestic support arrears cannot be wiped out, but Chapter 13 lets you pay them over the life of the plan under court supervision.
- You have assets you want to protect that Chapter 7 would not. If you own property that is non-exempt, a Chapter 13 plan can let you keep it by paying its value to creditors over time.
- Your income exceeds the amount that would allow you to qualify for a Chapter 7 Bankruptcy. Some people cannot pass the Chapter 7 means test based on excessive income. Chapter 13 is the alternative that still offers a path to discharge debts.
Chapter 7 often accomplishes what people assume only Chapter 13 can
Oftentimes, Clients assume they need to file a Chapter 13 bankruptcy for a number of reasons: they heard their income is too high for Chapter 7, or that they have too many assets to qualify, or that someone else in a similar situation filed Chapter 13. Often those assumptions do not hold up under review.
Chapter 7 discharges most unsecured debt — credit cards, medical bills, personal loans — within three to six months, with no repayment plan. The two chapters serve different purposes and are not simply faster and slower versions of the same thing. Chapter 13 provides tools Chapter 7 does not, but those tools only matter if your goal actually requires them.
Jerome's approach is to understand what you are trying to accomplish first. If Chapter 7 gets you there, that is what he will recommend because a Chapter 7 bankruptcy is cheaper, quicker, and less complicated than a Chapter 13 case. Talk to Jerome first before you assume that you must file a Chapter 13 case.
Related reading
- Chapter 7 Bankruptcy
The comparison this page already makes — often faster when a repayment plan isn't needed.
- Chapter 7 vs. Chapter 13
A direct, side-by-side comparison of both chapters.
- Foreclosure & Collection Defense
Chapter 13's most common real-world use case.
- Chapter 7 for Businesses
When business and personal debts are mixed.
- Guide: What You Keep
How Texas exemptions work under a repayment plan.
Start with a free case evaluation
Jerome A. Brown is Board Certified in both Consumer Bankruptcy Law and Business Bankruptcy Law by the Texas Board of Legal Specialization, with more than 40 years of experience. He will review your situation personally — income, debts, assets, and goals — and give you a straight answer about which path actually fits: Chapter 7, Chapter 13, debt settlement, or something else entirely.
Free Initial ConsultationServing Victoria and the Austin metro.