Bankruptcy FAQs | Law Offices of Al Malone
The Law Offices of Al Malone - Logo

Serving all of DFW |

Happy man counting money

Chapter 7 and Chapter 13 are the most common bankruptcy filings. Both come with pretty big consequences and have significant differences. Law Offices of Al Malone can help you navigate the proceedings. Reviewing these common questions will help you understand it better.

What are the differences between Chapter 7 and Chapter 13?

Vital bankruptcy questions and answers

Call for a FREE half-hour phone consultation, or visit us for a full hour at the office.

Choose an attorney who does all his own work.

Can anyone apply for Chapter 7 bankruptcy?

The short answer is "no." In order to file Chapter 7, you will need to have an extremely low income and pass the Means Test. People who earn a huge amount of money will have to apply for Chapter 13.

Can anyone apply for Chapter 13 bankruptcy?

There's a maximum debt amount you can have when applying for Chapter 13 bankruptcy. You can’t have more than $383,000 worth of unsecured debt or more than $1,100,000 of secured debt.

Can Chapter 7 and Chapter 13 get my student loans forgiven?

Unfortunately, student loans aren't typical debts. They're not forgivable by any means, so they have to be repaid. This is actually one of the biggest contributors to the student loan crisis, and why many new graduates have problems moving on with their lives. Student loans must be repaid, but you can negotiate your payments in many cases.

Are all filings accepted?

It's possible to file for both Chapter 7 and Chapter 13 bankruptcy and not get approved for either one. If this happens, you should talk to a specialist to figure out your next steps. It’s crucial to try filing for bankruptcy if it’s the only way out of your financial situation. You can get accepted for bankruptcy the second time, despite being rejected the first time.

Can I avoid Chapter 7 and Chapter 13 bankruptcy?

It's possible to avoid bankruptcy altogether if you're able to scrape up enough money and talk with the people who hold your debt. If you can negotiate better terms and improve the overall situation of your finances, you don’t need to file for bankruptcy at all. Getting out of debt takes a lot of personal strength and self-control. It's well worth the effort and it will generally improve your overall quality of life.


It's important to do whatever you can to avoid bankruptcy as filing for many forms of bankruptcy disables you from legally taking out a loan for years. Don't doubt that filing for bankruptcy will make your life a lot more difficult for a short period of time. You should avoid it by all means.


If you’re unsure if bankruptcy is unavoidable, talk to a qualified bankruptcy lawyer in your area. He will get a better grip of the situation, assess your needs, and also give you a straight answer about what to expect when going through the process of filing for bankruptcy.

Chapter 7 bankruptcy is the form of bankruptcy that you might want to choose

if you have a massive amount of unsecured debt, but no means to pay it back.

In order to successfully file for Chapter 7, you have to prove you have almost no (or no) disposable income. You'll likely need to pay your creditors by selling a

large portion of your nonexempt property, but it's not a total loss. When filing

for Chapter 7, your debts are basically forgiven by law and your creditors will no longer be able to collect. This is also called liquidation bankruptcy because it forces debtors to liquidate all their assets.


If you make a substantial income but can't pay back your debts, Chapter 13 is your most practical choice. This basically allows you to keep your assets and start a repayment plan that won't completely harm your financial situation. You'll also

be able to reorganize your assets and arbitrate for an easy repayment plan.

Unlike Chapter 7, which may take 3 to 5 months, it can take years to successfully go through Chapter 13 bankruptcy. However, most would rather choose Chapter 13 bankruptcy than go through full liquidation.

Q and A Hero