Chapter 7 vs. Chapter 13 Bankruptcy: Which Is Right for Idaho Residents?

Facing overwhelming debt can feel like you are trapped without options. The good news is that bankruptcy can provide a pathway to financial relief and a fresh start. For many Idaho residents, the two most common forms of consumer bankruptcy are Chapter 7 and Chapter 13. While both can help you regain control of your financial future, they work in very different ways. Understanding the differences between them is the first step in deciding which may be right for your situation.

At Avery Law, our Boise bankruptcy attorneys have successfully guided thousands of clients through both Chapter 7 and Chapter 13 cases. If you’re unsure which direction to take, our team is here to help you weigh your options and move forward with confidence.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy.” In this process:

• A bankruptcy trustee may sell certain non-exempt assets to repay creditors.
• Many unsecured debts, like credit card balances, medical bills, and personal loans, are completely discharged.
• The process is usually completed in just a few months, allowing you to move forward quickly.

In Idaho, many residents are able to protect their essential property thanks to bankruptcy exemptions. This often means you can keep your home, car, and personal belongings while eliminating burdensome debt. Chapter 7 is generally best for individuals with limited income who cannot realistically repay their debts over time.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is often called “reorganization bankruptcy.” Instead of eliminating debt right away, Chapter 13 allows you to create a structured repayment plan:

• You repay some or all of your debts over 3 to 5 years.
• The repayment plan is based on your income and ability to pay.
• Chapter 13 can help you save your home from foreclosure or catch up on missed car payments.

This option is often chosen by Idaho residents who have steady income but need extra time and protection to manage debt. Chapter 13 provides a way to restructure your finances while keeping valuable assets.

Which Bankruptcy Is Right for Idaho Residents?

The right choice depends entirely on your unique financial situation:

• Choose Chapter 7 if you are unable to repay debts and want a quick discharge.
• Choose Chapter 13 if you have steady income, want to protect assets, or need time to catch up on overdue payments.

Because every case is different, speaking with an experienced Boise bankruptcy lawyer can make all the difference. At Avery Law, we provide personalized guidance to ensure you choose the path that protects your future.

Take the Next Step Toward a Fresh Start

Bankruptcy is not the end—it’s the beginning of your financial recovery. Whether Chapter 7 or Chapter 13 is right for you, the attorneys at Avery Law have the knowledge and track record to help you navigate the process. With over 8,000 successful bankruptcy cases in Idaho, our firm is trusted by individuals and families across the state.

📞 Contact our Boise bankruptcy lawyers today at 208-204-5845 or visit Avery Bankruptcy Law to schedule a consultation. Your path to a brighter financial future starts here.