Chapter 7 vs. Chapter 13 Bankruptcy: Which Option is Right For Me?

Facing overwhelming debt can feel like you’re stuck in quicksand with no way out. But you’re not alone and you do have options. For many people, filing for bankruptcy can provide real relief and a fresh start. The most common types of bankruptcy for individuals are Chapter 7 and Chapter 13. While both can help, they work in very different ways. Choosing the right one depends on your unique situation.

That’s where bankruptcy services in Lancaster, PA come in. At Lazarus Law, we help clients just like you understand their options, make smart decisions, and move forward with confidence. Let’s break down the differences between Chapter 7 and Chapter 13 so you can see which might be the better fit for you.

What is Chapter 7 Bankruptcy?

Chapter 7 is often called “liquidation bankruptcy.” That might sound scary, but it’s really about wiping the slate clean. With Chapter 7, most of your unsecured debts, like credit cards, medical bills, and personal loans, can be discharged, meaning you’re no longer responsible for paying them.

However, in exchange for this relief, some of your non-essential assets could be sold to repay creditors. The good news is that many people don’t lose anything thanks to exemptions that protect things like their home, car, and basic belongings.

What is Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy works a bit differently. Instead of eliminating your debt right away, it sets up a repayment plan that lasts three to five years. You’ll make monthly payments based on your income, and in many cases, you’ll end up paying less than you owe. After the repayment period, any remaining eligible debts may be discharged.

Chapter 13 is a great option if you have a steady income and want to catch up on mortgage or car payments without losing your property.

How Do I Know Which One is Right for Me?

Every case is different, but here are a few general guidelines:

Choose Chapter 7 if:
• You have mostly unsecured debt like credit cards or medical bills
• You don’t have a lot of valuable assets
• Your income is below the median for your area

Choose Chapter 13 if:
• You’re behind on secured debts like your mortgage or car loan but want to keep your property
• You earn a steady income and can afford monthly payments
• You’ve filed Chapter 7 recently and aren’t eligible to do so again yet

The best way to decide is to talk to a knowledgeable attorney. Our team offers bankruptcy services in Lancaster, PA, tailored to your specific needs and goals.

How Bankruptcy Affects Your Credit

Yes, bankruptcy does impact your credit, but maybe not as badly as you think. If you’re already behind on payments, your score may already be low. Bankruptcy can stop the bleeding and give you a chance to rebuild.

Chapter 7 stays on your credit report for 10 years, while Chapter 13 stays for 7. But many people start improving their credit shortly after filing. And with the right help, you can get back on track even faster. That’s another reason to trust local attorneys for bankruptcy services in Lancaster, PA. We’re here to guide you every step of the way.

The Benefits of Hiring a Local Bankruptcy Attorney

Filing for bankruptcy is a legal process with strict rules and deadlines. A single mistake can delay your case or get it thrown out completely. That’s why working with experienced bankruptcy services in Lancaster, PA, is so important.

At Lazarus Law, we don’t treat you like just another case. We take the time to explain everything in plain English and help you make informed choices. Whether you’re leaning toward Chapter 7 or Chapter 13, our team will handle the paperwork, protect your rights, and give you peace of mind.

Why Choose Lazarus Law?

We’re proud to offer trusted bankruptcy services in Lancaster, PA, with compassion and respect. We understand that financial struggles are personal and stressful. That’s why we work hard to create a safe, judgment-free space where you can ask questions and get honest answers.

Our team is local, experienced, and deeply committed to helping our neighbors regain control of their finances.

Contact Us Today

If you're ready to explore your options and take back control of your financial future, Lazarus Law is here to help. Call us at (717) 298-0852 or schedule a consultation today to speak with a knowledgeable and caring bankruptcy attorney. You don’t have to face this alone. Let us walk with you every step of the way.