A Plain-Language Comparison for Columbus, GA Filers
Most people researching bankruptcy in Columbus, Georgia quickly learn that there are two main options available to individual filers: Chapter 7 and Chapter 13. What’s less clear is how they’re different, which one they qualify for, and which one actually solves their specific problem. Those are the questions this page addresses directly.
Chapter 7 and Chapter 13 are built on the same basic idea. They both use the federal bankruptcy system to provide relief from debt you cannot manage. But they work through very different mechanisms, they produce different outcomes, and they are designed for different situations. Choosing between them is not a matter of one being better than the other in some general sense. It’s a matter of which one fits what you need.
Some people don’t have a choice. If your income is too high to pass the Chapter 7 means test, Chapter 13 is the only option. If you have significant non-exempt property you want to protect, Chapter 13 may be the safer path even if you technically qualify for Chapter 7. If you’re behind on your mortgage and want to stop a foreclosure while catching up on arrears, Chapter 13 has tools that Chapter 7 does not.
This page walks through each major difference between Chapter 7 and Chapter 13 in plain terms, including qualification, timeline, what happens to your property, how debts are handled, and what each chapter costs. A side-by-side comparison table is near the top for a quick overview, with detailed explanations following, and FAQs at the end covering the questions people most commonly ask when deciding which way to go.
Key Takeaways
- Chapter 7 eliminates most unsecured debts in 3 to 4 months with no repayment plan. Chapter 13 requires a 3 to 5 year repayment plan but gives filers more control over what happens to their property.
- Chapter 7 requires passing a means test based on Georgia income thresholds. Chapter 13 requires regular income sufficient to fund a repayment plan.
- Chapter 13 is often the right choice for filers who are behind on a mortgage and want to save their home, who have significant non-exempt assets, or whose income is too high to qualify for Chapter 7.
- Chapter 7 is generally faster, less expensive upfront, and better suited for filers with primarily unsecured debt and limited assets.
- The right chapter depends on your income, your assets, which debts are causing the most harm, and what outcome you’re trying to achieve. Many people qualify for both and need to weigh which one better fits their goals.
Chapter 7 vs. Chapter 13: Side-by-Side Comparison
| Factor | Chapter 7 | Chapter 13 |
| Common name | Liquidation bankruptcy | Reorganization bankruptcy |
| Qualification | Must pass means test or qualify automatically | Must have regular income to fund repayment plan |
| Income limit | Based on Georgia median income and disposable income test | No income ceiling; must have enough to fund a plan |
| Repayment plan | None | 3 to 5 years |
| Timeline to discharge | 3 to 4 months | 3 to 5 years after completing plan |
| Court filing fee | $338 | $313 |
| Typical attorney fees (Middle District) | $1,000 to $2,000 | $3,500 to $4,250 |
| Non-exempt assets | May be liquidated by trustee | Retained; value paid to creditors through plan |
| Home foreclosure | Temporarily delays with automatic stay; does not cure arrears | Can stop foreclosure and cure mortgage arrears over plan |
| Car repossession | Temporarily delays; does not restructure loan terms | Can restructure some auto loans through plan |
| Student loans | Not discharged (rare hardship exception) | Not discharged; managed through plan payments |
| Tax debts | Older qualifying taxes may be discharged | Non-dischargeable taxes paid through plan |
| Effect on credit report | Remains up to 10 years | Remains up to 7 years |
| Prior bankruptcy limit (Ch7) | 8 years since last Ch7 discharge | 4 years since last Ch7 discharge |
| Prior bankruptcy limit (Ch13) | 4 years since last Ch7 discharge | 2 years since last Ch13 discharge |
Note: Attorney fee ranges reflect typical Chapter 7 and Chapter 13 fees in the Middle District of Georgia, Columbus Division. Individual fees vary by case complexity. Verify all current figures with your attorney.
Qualification
Chapter 7- The Means Test
To file Chapter 7, you must either pass the means test or qualify automatically. The means test starts by comparing your household income over the past six months to the Georgia median income for your household size. If you’re at or below the median, you pass and can file Chapter 7. If you’re above the median, a second part of the test calculates your disposable income after allowed expenses. If that number falls below the threshold, you still qualify. If it doesn’t, you may be limited to Chapter 13.
Certain filers qualify automatically without the full means test: disabled veterans whose debts were primarily incurred during active military service, members of the National Guard or Reserve on certain active duty orders, and filers whose debts are primarily non-consumer business debts.
The means test process is covered in full detail on our Chapter 7 eligibility and means test page, including current Georgia median income figures.
Chapter 13- Regular Income Requirement
Chapter 13 has no income ceiling. There is no means test designed to exclude higher earners. What Chapter 13 requires instead is that you have regular income sufficient to fund a repayment plan that satisfies the requirements the bankruptcy court will approve. You don’t need to be employed in the traditional sense. Self-employment income, Social Security, pension income, and other regular sources can all qualify.
Chapter 13 does have debt limits. As of 2024, filers must have less than roughly $465,275 in unsecured debt and less than $1,395,875 in secured debt to be eligible. If your debt levels exceed these limits, neither Chapter 7 nor standard Chapter 13 may be appropriate, and your attorney will need to walk through what options exist.
Asset Protection
What Happens to Your Property in Chapter 7
Chapter 7 is called a liquidation bankruptcy because the trustee has the authority to sell non-exempt assets and distribute the proceeds to creditors. In practice, the vast majority of individual Chapter 7 cases in Columbus are no-asset cases, meaning the trustee finds nothing worth liquidating after applying Georgia’s exemptions. Most consumer filers have protected everything they own.
Georgia’s exemptions protect up to $21,500 of home equity for a single filer, up to $5,000 of vehicle equity, up to $5,000 in personal property, and retirement accounts in full, among other categories. A wildcard exemption of $1,200 plus up to $10,000 of unused homestead exemption provides additional flexibility. If your assets fall within those limits, the trustee passes them by.
The full list of Georgia exemption amounts and how they apply is covered on our Chapter 7 property exemptions page.
What Happens to Your Property in Chapter 13
Chapter 13 does not involve liquidation. You keep all of your property, including assets that would be non-exempt in Chapter 7. The trade-off is that your repayment plan must pay unsecured creditors at least as much as they would have received if you had filed Chapter 7 and the trustee had liquidated your non-exempt assets. This is called the best interests of creditors test.
For filers who own significant non-exempt property such as a second vehicle, equity above the Chapter 7 exemption limits, or business assets, Chapter 13 can be the more practical option precisely because it allows them to retain those assets in exchange for a structured repayment commitment.
Repayment
Chapter 7- No Repayment Plan
Chapter 7 does not require you to repay your unsecured debts. Once the discharge is entered, those obligations are permanently eliminated. You don’t make payments to creditors during the case. You don’t make payments to creditors after the case. The discharged debts are gone. The only payments that continue after a Chapter 7 discharge are debts tied to property you’re keeping, such as a mortgage or a reaffirmed car loan, and debts that are non-dischargeable by law, such as student loans, child support, and recent income taxes.
Chapter 13- The Repayment Plan
Chapter 13 centers on a repayment plan that runs three to five years. The length depends on your income relative to the Georgia median. Filers below the median can propose a three-year plan. Filers above the median are required to commit to five years. During the plan period, you make monthly payments to the Chapter 13 trustee, who distributes funds to creditors in the order of priority set by bankruptcy law.
Secured creditors, such as your mortgage lender and car lender, are paid first. Priority unsecured creditors, such as the IRS for recent taxes and domestic support obligations, are paid in full. General unsecured creditors, such as credit cards and medical bills, receive whatever remains. In many cases, unsecured creditors receive only a fraction of what they’re owed. The balance is discharged at the end of the plan.
The repayment plan structure is what makes Chapter 13 useful for situations that Chapter 7 cannot address. If you’re behind on your mortgage, your plan can include the arrears and bring the loan current over the plan period while the automatic stay prevents the lender from foreclosing. If you have non-dischargeable tax debt, your plan can include a structured payoff to the IRS over time.
Timeline
Chapter 7- 3 to 4 Months
From the date the petition is filed, a Chapter 7 case in the Middle District of Georgia typically reaches discharge in 3 to 4 months. The 341 Meeting of Creditors is scheduled 20 to 40 days after filing and is conducted via Zoom. The discharge is entered approximately 60 days after the 341 Meeting, assuming no objections and assuming the debtor education certificate has been filed on time. The case is then closed shortly after.
The speed of Chapter 7 is one of its most meaningful advantages for people who need relief quickly. Creditor calls and collection actions stop the moment the petition is filed, and the discharge itself arrives in a matter of months rather than years.
A full step-by-step breakdown of the Chapter 7 timeline is on our Chapter 7 process and timeline page.
Chapter 13- 3 to 5 Years
A Chapter 13 case does not conclude at discharge in the traditional sense. The case remains open for the full length of the repayment plan, which runs three to five years. The discharge is entered only after all plan payments are completed. During those years, you remain in an active bankruptcy case, which means continued court oversight, continued trustee involvement, and an ongoing obligation to make plan payments on time every month.
This is a significant commitment. Life changes during a three-to-five-year plan, and modifications are sometimes needed. Plans can be modified if circumstances change, and cases can sometimes be converted to Chapter 7. But the commitment is real, and anyone considering Chapter 13 should understand upfront what that timeline actually requires.
Cost Differences
Chapter 7 is less expensive upfront. The court filing fee is $338 and attorney fees in the Middle District of Georgia for a standard case typically run $1,000 to $2,000, paid before filing. Two required courses cost $20 to $100 combined. Most straightforward Chapter 7 cases cost $1,400 to $2,500 all-in.
Chapter 13 involves a lower court filing fee of $313, but attorney fees are significantly higher because the case requires years of active management. In the Middle District of Georgia, Chapter 13 attorney fees typically run $3,500 to $4,250. Those fees can be paid in part through the repayment plan rather than entirely upfront, which lowers the initial out-of-pocket cost but does not reduce the total amount paid over time.
Cost should not be the deciding factor on its own. Chapter 13 costs more because it does more in specific situations. If Chapter 7 won’t solve your problem, the option that will is worth the higher price. If both chapters would solve your problem equally well, cost becomes a meaningful factor.
A full breakdown of Chapter 7 fees, payment options, and what drives cost variation is on our Chapter 7 costs and attorney fees page.
Who Should Consider Chapter 7
Chapter 7 tends to be the right fit when most of your debt is unsecured, your income is at or below Georgia’s median for your household size, and you don’t have significant non-exempt assets that would be at risk with a trustee. If you owe primarily credit cards, medical bills, personal loans, and utility arrears, and your property fits within Georgia’s exemption limits, Chapter 7 can eliminate those debts in a matter of months with no repayment plan required.
Chapter 7 is the better option when speed matters. If you’re dealing with a wage garnishment that’s cutting your paycheck, a bank levy, or escalating collection pressure, the automatic stay that takes effect the moment Chapter 7 is filed stops all of that immediately. The discharge arrives within months, not years.
Chapter 7 is worth considering if you haven’t filed Chapter 7 within the past eight years, haven’t had a bankruptcy case dismissed within the past year, and are currently on any secured debts you want to keep. If any of those conditions aren’t met, your eligibility or the scope of automatic stay protection may be affected.
Who Should Consider Chapter 13
Chapter 13 becomes the right answer in several specific situations. The clearest is when you’re behind on your mortgage and want to keep your home. Chapter 7 does not cure mortgage arrears. It can delay a foreclosure briefly through the automatic stay, but once the stay is lifted the lender can resume proceedings. Chapter 13 lets you include the arrears in your repayment plan and bring the mortgage current over time while keeping the home.
Chapter 13 is worth considering when you have non-exempt property you want to protect. If you own a vehicle with equity above the $5,000 Georgia exemption, investment property, or other assets that would be exposed in a Chapter 7 liquidation, Chapter 13 lets you keep those assets by paying their equivalent value to unsecured creditors through your plan.
If your income is too high to pass the Chapter 7 means test, Chapter 13 may be your only option under federal bankruptcy law. And if you have non-dischargeable tax debt or domestic support arrears that you can’t resolve all at once, Chapter 13 gives you a structured multi-year timeline to pay them off under court protection, with unsecured creditors often receiving only a fraction of what’s owed.
Frequently Asked Questions About Chapter 7 vs. Chapter 13
Q. What is the main difference between Chapter 7 and Chapter 13?
A. Chapter 7 eliminates most unsecured debts through a process that takes 3 to 4 months and requires no repayment plan. Chapter 13 reorganizes your debt into a 3 to 5 year repayment plan after which remaining eligible debts are discharged. Chapter 7 is faster and involves less total cost. Chapter 13 takes longer but lets you keep non-exempt property and gives you tools to address secured debts like mortgages that Chapter 7 cannot touch.
Q. How do I know which chapter I qualify for?
A. Eligibility for Chapter 7 depends on passing the means test, which compares your income to the Georgia median for your household size and, if you’re above the median, runs a disposable income calculation. Chapter 13 requires regular income sufficient to fund a repayment plan, with no income ceiling, but it does have debt limits. Many people qualify for both, and for them the choice comes down to which chapter better fits their situation. An attorney will run both analyses during the initial consultation.
Q. Can I save my house from foreclosure with Chapter 7?
A. Chapter 7 triggers an automatic stay that temporarily halts foreclosure proceedings, but it does not allow you to cure mortgage arrears. Once the Chapter 7 case closes and the stay is lifted, the lender can resume foreclosure if you haven’t resolved the arrears. Chapter 13 is the chapter designed to stop foreclosure and bring a mortgage current over time. If saving your home is the primary goal, Chapter 13 is generally the more effective tool.
Q. What if my income is too high for Chapter 7?
A. If your household income exceeds the Georgia median and your disposable income after allowed expenses is above the means test threshold, you may not be eligible for Chapter 7. In that case, Chapter 13 is typically the available option. Chapter 13 has no income ceiling. Its requirement is that you have regular income to fund an approved repayment plan.
Q. Will I lose my car or house if I file Chapter 7?
A. Not necessarily. Georgia’s exemptions protect up to $21,500 of home equity for a single filer and up to $5,000 of vehicle equity. If your equity falls within those limits, the trustee has nothing to pursue. You can keep your home and car as long as you continue making the loan payments and, for your car, sign a reaffirmation agreement if your lender requires one. Chapter 13 gives you additional protection for equity above those limits by letting you keep non-exempt assets through the repayment plan.
Q. How do the timelines compare?
A. Chapter 7 from filing to discharge typically takes 3 to 4 months in the Middle District of Georgia. The 341 Meeting is scheduled 20 to 40 days after filing, and discharge follows approximately 60 days after that. Chapter 13 remains open for the full length of the repayment plan, which runs three years for below-median income filers and five years for above-median filers. Discharge is entered only after all plan payments are completed.
Q. Is Chapter 13 more expensive than Chapter 7?
A. Yes, in total cost. Chapter 7 attorney fees in the Middle District of Georgia typically run $1,000 to $2,000 for a standard case. Chapter 13 attorney fees typically run $3,500 to $4,250 because the case requires multi-year active management. The Chapter 13 filing fee is $313, slightly lower than the $338 Chapter 7 fee. Chapter 13 fees can be paid in part through the repayment plan, which lowers the initial out-of-pocket cost but not the total.
Q. Can I convert from Chapter 13 to Chapter 7 after I file?
A. In most cases, yes. Debtors generally have the right to convert a Chapter 13 case to Chapter 7 at any point, as long as they haven’t previously converted the case from another chapter and they meet Chapter 7 eligibility requirements. Conversion changes the nature of the case significantly, so it’s a decision to make carefully with your attorney rather than something to treat as an exit option going in.
Q. Which chapter stays on my credit report longer?
A. A Chapter 7 filing remains on a credit report for up to 10 years from the filing date. A Chapter 13 filing remains for up to 7 years from the filing date. This difference exists because Chapter 13 involves a repayment commitment while Chapter 7 does not. For people who weigh credit report impact heavily in the decision, Chapter 13’s shorter reporting period is a factor worth considering alongside all the others.
Not Sure Which Chapter Fits Your Situation? Let’s Work Through It Together.
The decision between Chapter 7 and Chapter 13 is not one to make based on a general comparison page. It depends on your specific income, your specific assets, which debts are creating the most pressure, and what outcome you actually need. People who come into our office in Columbus, Georgia having read everything they can find still often find that the analysis looks different when we apply it to their actual numbers.
At Arey and Cross, P.C., we ran through both options during the initial consultation. We look at whether you qualify for Chapter 7, whether Chapter 13 would produce a better result given your goals, and what a realistic repayment plan would look like if that’s the right direction. We’ll tell you clearly which chapter fits your situation and why, and answer any questions you have before you decide to move forward.
For a full overview of how Chapter 7 works from eligibility through discharge, visit our Chapter 7 bankruptcy overview.
For a full overview of how Chapter 13 works, including the repayment plan process and what it means to reorganize your debt, visit our Chapter 13 bankruptcy overview.
Call us at 706-200-5552 or stop by 4800 Armour Road, Suite A, Columbus, GA 31904. The first consultation is free, and by the time it’s over you’ll know which option makes sense for you and what the next step looks like.