 TITLE: What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy? CONTENT: What Are the Eligibility Rules for Bankruptcy?\n----------------------------------------------\nThe main difference in eligibility comes down to your income. Chapter 7 requires you to have either a below-median level income for your state or to pass a means test to determine whether you can reasonably be expected to repay your debts with your disposable income (that's the income you have left over after paying for the essentials).\nIf you don't qualify for Chapter 7, you'll have to look at Chapter 13 bankruptcy instead. For this route, you'd have a regular income, unsecured debts under $419,275 and secured debts that total no more than $1,257,850 (as of 2021). END