Chapter 13 bankruptcy is eliminated seven years after the filing date because it requires at least a partial repayment of the debts you owe. Chapter 7 bankruptcy is eliminated 10 years after the filing date because none of the debts are paid. All Chapter 7 bankruptcy cases begin with the filing of the case and end when the bankruptcy court closes the case. Another thing you should know is that lenders may consider Chapter 13 bankruptcy a little more favorably than Chapter 7, since with a Chapter 13 bankruptcy, you normally agree to pay at least part of your debt.
The appeal test shows the bankruptcy court that you are eligible for debt relief because your monthly income is not sufficient to pay your unsecured debts in a Chapter 13 bankruptcy. It's always best to talk to a bankruptcy lawyer about a Chapter 13 filing, since there are a lot of moving parts in the Chapter 13 bankruptcy process. To file for bankruptcy under Chapter 7 of the United States Bankruptcy Code, you must pass the resources test.
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