Top 3 Differences between a Mesa Chapter 7 and Chapter 13 Bankruptcy

In Mesa, Chapter 7 bankruptcy and Chapter 13 bankruptcy are the most commonly filed types. Chapter 7 is a liquidation bankruptcy while Chapter 13 is a reorganization of debts. A Mesa bankruptcy lawyer can assist you in making the best choice.

Differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy in Mesa, AZ

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Learn the benefits, and drawbacks between Chapter 7 & 13 Bankruptcy in Mesa.
Mesa, Arizona


The benefits to a Chapter 7 bankruptcy are that you are able to quickly wipe away all unsecured debt and obtain a fresh start. In some cases you may be allowed to keep some secured debt, such as your home or vehicle if they do not hold much equity. Chapter 7 bankruptcy works best for those with a low income and a substantial amount of debt. In order to meet the criteria for Chapter 7 bankruptcy you should have little or no disposable income.
The benefits to a Chapter 13 bankruptcy are the ability to retain ownership of your properties while obtaining debt relief and being allowed to catch up missed payments on these properties. Filing for bankruptcy can stay a foreclosure or wage garnishment and prohibit creditors from harassing you.


Some of the drawbacks to chapter 7 bankruptcy are the liquidation of assets and the fact that you may still be responsible for some types of debt that cannot be discharged by bankruptcy. Although laws vary, generally the court will appoint a trustee to sell your properties, and you will still be responsible for debts that are not eligible to be included in bankruptcy such as child support, tax debts, and most student loans.

Some drawbacks to chapter 13 bankruptcy include having a trustee appointed to oversee your finances and debt repayment. Unlike the immediate relief provided by Chapter 7 bankruptcy, Chapter 13 bankruptcy is an ongoing debt consolidation plan carried out over several years. Additionally you will not be able to obtain credit while in the midst of your court ordered repayment plan.


In order to be eligible for Chapter 7 bankruptcy, your disposable income must be low enough to pass the Chapter 7 means test which analyzes both your income and expenses. This test is designed to prevent those with a higher income from filing for Chapter 7 bankruptcy in order to completely wipe out all of their debts.

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If you don’t pass the means test you may still be eligible for Chapter 13 bankruptcy, which is a reorganization of debt. Since under Chapter 13 bankruptcy you retain your possessions you will be required to show the court that you have reason to expect enough income to repay your debts through a court structured repayment plan.

Just as in any court proceeding, having a highly experienced Mesa bankruptcy lawyer can make a great deal of difference in the outcome of your case. All of the bankruptcy lawyers at My AZ Lawyers are highly experienced and possess extensive education in the field of bankruptcy law.

Published By:
Candace Kallen, Attorney at My AZ Lawyers My AZ Lawyers

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 399-4222

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