Chapter 7 vs. Chapter 13 Bankruptcy: What You Need to Know

July 5, 2023

Chapter 7 vs. Chapter 13 Bankruptcy: What You Need to Know

Are you struggling to keep up with your bills and payments? Filing for bankruptcy might be the solution to your financial woes. However, it's important to understand the differences between chapter 7 and chapter 13 bankruptcy before deciding which one is right for you. As experienced legal professionals at Roderick Linton Belfance, LLP in Akron, Ohio, we can guide you through the bankruptcy process and help you make the best decision for your specific situation.


Chapter 7 bankruptcy, also known as liquidation bankruptcy, is typically suited for individuals with little to no regular income. In a chapter 7 bankruptcy case, the court will liquidate your assets to pay off your debts. However, certain types of assets, such as your home or car, may be exempt from liquidation. If you're eligible for chapter 7 bankruptcy, it can discharge most of your unsecured debts, such as credit card balances and medical bills, in as little as three months. However, it's important to note that it can also have a negative impact on your credit score and remain on your credit report for up to 10 years.


On the other hand, chapter 13 bankruptcy, also known as reorganization bankruptcy, is typically suited for individuals with regular income who want to keep their assets but need help restructuring their debt. In a chapter 13 bankruptcy case, you'll work with a payment plan to pay off your debts over a period of three to five years. Chapter 13 bankruptcy can include all types of debts, including secured debts like your mortgage or car loan, and can help you avoid foreclosure or repossession. While you'll still have to make payments, they'll be more manageable, and you'll have a better chance of paying off your debts in full. Chapter 13 bankruptcy can also have a less negative impact on your credit score than chapter 7.


So who should file for chapter 7 bankruptcy? If you have little to no regular income and your debt is mostly unsecured, chapter 7 might be the best option for you. However, it's important to note that there are income limits for chapter 7 eligibility, and if you make too much money, you might not be able to file. Additionally, if you have valuable assets you don't want to lose, such as your home or car, chapter 7 might not be the best option for you.
On the other hand, if you have regular income and need help restructuring your debt, chapter 13 bankruptcy might be the best option for you. Chapter 13 can also be a good option if you have valuable assets you want to keep, such as your home or car, as it allows you to restructure your payments and avoid foreclosure or repossession.


Filing for bankruptcy can be a difficult decision to make, but it can also be a fresh start for your financial future. However, it's important to understand the differences between chapter 7 and chapter 13 bankruptcy, and which one is right for you. At Roderick Linton Belfance, LLP in Akron, Ohio, we have years of experience guiding clients through the bankruptcy process, and we can help you make the best decision for your situation. Contact us today to schedule a consultation and take the first step towards a brighter financial future.

By Aj rlbllp.com November 17, 2025
Resolving Disputes Efficiently: How Mediation and Arbitration Benefit You Disputes, whether in business, family, or civil matters, can be stressful, time-consuming, and costly. At Roderick Linton Belfance, we proudly have a team of former judges who lead our mediation and arbitration group. We understand the importance of resolving conflicts efficiently and equitably. Increasingly, clients are turning to mediation and arbitration to settle legal matters. Our unique blend of judicial knowledge and practical legal insight positions us to guide clients through these processes, ensuring their interests are protected while saving time and resources. Why Choose Mediation and Arbitration? Traditional litigation is sometimes necessary, but it is not always the best path for every dispute. Court cases can drag on for months or even years, leading to mounting legal fees and emotional fatigue. Mediation and arbitration offer alternatives that are often more flexible, private, and expedient. At Roderick Linton Belfance, our three former judges bring a wealth of knowledge in this area. Their backgrounds presiding over a wide range of cases give them an unparalleled understanding of legal complexities and dispute dynamics. As mediators, they facilitate constructive dialogue, helping parties reach mutually agreeable solutions. As arbitrators, they apply their judicial expertise to deliver impartial decisions based on the facts and evidence presented. Clients benefit from our former judges as they are adept at identifying the core issues in a dispute, anticipating potential roadblocks, and encouraging productive negotiation. Their reputations for fairness and authority often foster trust and cooperation among all parties involved. Mediation: Collaboration Over Confrontation Mediation is a voluntary and confidential process where a neutral third party helps adverse parties find common ground. Unlike a judge or arbitrator, the mediator does not impose a solution; instead, they guide the conversation and help generate creative outcomes for settlement. Mediation can be especially effective in family law, employment disputes, and business disagreements, where preserving relationships is important. Arbitration: Efficient and Binding Decisions When parties need a binding resolution but wish to avoid the rigidity and publicity of court, arbitration offers a compelling alternative. In arbitration, an impartial arbitrator, often a former or retired judge, considers the evidence and arguments before rendering a decision. This process is typically faster and less formal than court litigation. Our former judges are frequently called upon as arbitrators due to their deep legal knowledge and reputation for impartiality. For clients, arbitration can mean a quicker, more predictable outcome with less disruption to their personal or business lives. At Roderick Linton Belfance, we are committed to helping clients resolve disputes cost-effectively, efficiently, and with dignity. Leveraging the wisdom of our three former judges, we tailor our strategies to each client’s unique situation. Whether through mediation, arbitration, or a combination of both, our goal is to secure the best possible outcome while reducing the stress and expense of traditional litigation. If you are facing a legal dispute, consider the advantages of mediation and arbitration. With the guidance of one of our attorneys and the insight of our former judges, you can move forward with confidence, knowing that your interests are in capable hands. Call us at 330-434-3000 today.
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