If you feel overwhelmed by debt, you may have wondered whether it is possible to file for Chapter 7 and Chapter 13 bankruptcy at the same time. This blog covers this question to help you get a better picture of your options.
Why you cannot do so
Under the U.S. Bankruptcy Code, courts generally do not allow you to keep two bankruptcy proceedings open at the same time. When you file for bankruptcy, the law places all of your property and legal interests into one bankruptcy estate. The court then manages that estate as a single case.
Because a second filing would attempt to create a second estate out of the same assets already being managed by the court, filing a new petition while a case is still open will typically result in the court dismissing the second case.
This rule also protects the court system and your creditors. When you file, an automatic stay immediately stops most collection efforts.
If you could run two cases at once, different courts might issue conflicting rulings about the same debts and property. That confusion would disrupt the process for everyone involved.
What makes Chapter 7 and Chapter 13 different
Much of the confusion stems from how different the two chapters are in purpose and structure. Here is a quick comparison:
- Chapter 7 is often called “liquidation bankruptcy.” It allows you to discharge most unsecured debts within three to six months, though non-exempt assets may be sold to repay creditors.
- Chapter 13 is known as a “wage earner’s plan.” It lets you keep your property, including assets you might lose in Chapter 7, by paying back your debts through a court-approved plan over three to five years.
You may also hear the informal term “Chapter 20” bankruptcy. While not an official chapter in the Bankruptcy Code, this refers to a strategic sequence where a debtor files for Chapter 7 to wipe out dischargeable debt and immediately follows with a Chapter 13 filing to manage remaining obligations, such as mortgage arrears or tax debt.
How converting between chapters could work for you
If your financial situation changes after you file, you may be able to convert your case from one chapter to another. For instance, if you filed Chapter 13 but lost your job, you have the right to convert to Chapter 7. The reverse is also possible if you want to protect assets through a repayment plan, though this requires court approval.
Conversions are not always automatic. The court will evaluate whether you meet the eligibility requirements for the new chapter, including the means test or the 2026 Chapter 13 debt limits ($526,700 for unsecured and $1,580,125 for secured debts).
