Nicolet Law Office, S.C.

Three Main Differences Between Chapter 7 And Chapter 13

Millions of Americans file for debt relief through bankruptcy each year. The Bankruptcy Code was written to be a financial safety net for individuals who are facing mounting debt. Whether through job loss, reduction in hours, divorce or medical emergency, financial peril is usually only a few paychecks away. Fortunately, depending on your circumstances, you have numerous legal options.

#1: What happens to my debt?

Chapter 7 bankruptcy is often referred to as debt elimination or debt liquidation. Once you've completed all steps of the process, your unsecured debt is eliminated. Conversely, Chapter 13 is referred to as debt reorganization. Based on your income, you will be given a three year or five year repayment plan. Successfully completing your repayment plan results in the elimination of your unsecured debt.

#2: How often can I file?

Depending on your bankruptcy history, you might be eligible to file again should the need arise. If you filed for Chapter 7, you cannot file another Chapter 7 until eight years have passed. You cannot file a Chapter 13 if, in the last four years, you have filed Chapter 7, Chapter 11, or Chapter 12, or if you filed a Chapter 13 in the previous two years.

#3: How can I tell if I'm eligible?

To be eligible for a Chapter 7, a debtor must pass the means test. Essentially, the means test compares your income against the state median income. If you are not eligible for a Chapter 7, you are likely eligible for a Chapter 13. A bankruptcy attorney can carefully examine your finances and provide clear direction.


Filing for bankruptcy is a personal choice reliant on numerous factors. You should consider the types of debt you are facing, what property you would prefer to protect and what exemptions exist in your state. Before making this life-changing decision, it is wise to discuss the matter in detail with a lawyer experienced in these matters.

Source: American Bar, "General Comparison of Chapter 7 and Chapter 13 Bankruptcy." Accessed 4/6/15.

Awards & Recognition

Our peers and independent third-party organizations have recognized the hard work and dedication we put into every case. This has led to numerous awards and accolades.

  1. Rated By Super Lawyers | Russel D. Nicolet
    Super Lawyers Rising Stars
    Avvo Rating 10.0 Superb | Top Attorney Personal Injury Avvo Rating 10.0 Superb | Top Attorney Bankruptcy
  2. The American Association of Legal Advocates Wisconsin Association for Justice BBB Accredited Business - A+
  3. Minnesota State Bar Association American Bar Association State Bar of Wisconsin
  4. BV Distinguished | Lexis Nexis | Martindale-Hubbell | For Ethical Standards and Legal Ability The National Trial Lawyers Million Dollar Advocates Forum

Personal Attention To You -
Personal Dedication To Your Case

Contact us today for a free consultation where you will speak directly with one of our attorneys. We are conveniently located for your accessibility, with offices in Hudson, Eau Claire, and five other cities throughout the region. If your condition prevents you from coming to one of our offices, we will happily meet with you at your home or another location that is comfortable for you.

Call Us: 800-456-6956

  • In Wisconsin, call: 715-802-0872
  • In Minnesota, call: 651-243-2872

Tell Us About Your Case We’ll review your case details and contact you with an action plan.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response

Wisconsin Offices

Hudson Office
511 2nd Street Suite 203
Hudson, WI 54016

Hudson Law Office Map

Rice Lake Office
337 N. Main Street
Rice Lake, WI 54868

Rice Lake Law Office Map

Eau Claire Office
402 Graham Ave, Suite 305
Eau Claire, WI 54701

Eau Claire Law Office Map

Superior Office
1200 Tower Ave.
Superior, WI 54880

Superior Law Office Map

New Richmond Office
1500 Madison Ave., Suite 220
New Richmond, WI 54017

New Richmond Law Office Map

Wausau Office
408 Third Street, Suite 303
Wausau, WI 54401

Wausau Law Office Map

Woodbury Office
724 Bielenberg Drive, Suite 126
Woodbury, MN 55125

Woodbury Law Office Map

Duluth Office
109 North 2nd Avenue West
Duluth, MN 55802

Duluth Law Office Map

Hibbing Office
Howard Court Bldg.
302 Howard St. , Ste. 123
Hibbing, MN 55746

Hibbing Law Office Map

Minnesota Offices