SECURITIES AND EXCHANGE COMMISSION

                               WASHINGTON, D.C. 20549

                                     FORM 10-Q

                  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                          SECURITIES EXCHANGE ACT OF 1934

/X/  Quarterly report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

For the quarterly period ended September 30, 1998

/ /  Transition report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

For the transition period from _____ to _____

Commission file number:  0-19232

                       Fidelity Leasing Income Fund VII, L.P.
_______________________________________________________________________________
               (Exact name of registrant as specified in its charter)

            Delaware                                    23-2581971
_______________________________________________________________________________
     (State of organization)               (I.R.S. Employer Identification No.)

                 3 North Columbus Boulevard, Philadelphia, PA 19106
_______________________________________________________________________________
                (Address of principal executive offices)   (Zip code)

                                   (215) 574-1636
_______________________________________________________________________________
                (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the regis-
trant was required to file such reports), and (2) has been subject to such fil-
ing requirements for the past 90 days.

Yes  __X__  No _____


















                                    Page 1 of 12


Part I:  Financial Information
Item 1:  Financial Statements

                       FIDELITY LEASING INCOME FUND VII, L.P.

                                   BALANCE SHEETS

                                       ASSETS

                                          (Unaudited)               (Audited)  
                                         September 30,             December 31,
                                             1998                     1997   
                                         _____________            ____________

Cash and cash equivalents                  $ 1,042,765             $ 3,185,012

Accounts receivable                             35,680                 440,830

Due from related parties                        30,324                 444,897

Equipment under operating leases
(net of accumulated depreciation
of $6,095,173 and $6,817,100,
respectively)                                6,478,393               6,214,378

Net investment in direct financing leases    2,052,316                 295,319

Equipment held for sale or lease               593,603                  39,958
 
                                           ___________              __________

       Total assets                        $10,233,081             $10,620,394
                                           ===========             ===========

                         LIABILITIES AND PARTNERS' CAPITAL
Liabilities:

     Lease rents paid in advance           $    82,504             $   101,304

     Accounts payable - equipment               -                        7,050

     Accounts payable and
      accrued expenses                          49,632                 100,885

     Due to related parties                     12,132                  42,321
                                           ___________             ___________
       Total liabilities                       144,268                 251,560

Partners' capital                           10,088,813              10,368,834
                                           ___________             ___________
        Total liabilities and
         partners' capital                 $10,233,081             $10,620,394
                                           ===========             ===========






The accompanying notes are an integral part of these financial statements.

                                         2


                       FIDELITY LEASING INCOME FUND VII, L.P.

                              STATEMENTS OF OPERATIONS

                                     (Unaudited)

                                  Three Months Ended       Nine Months Ended
                                     September 30             September 30  
                                  1998          1997        1998        1997
                                  ____          ____        ____        ____

Income:
     Rentals                   $  846,086    $1,243,191  $2,803,200  $3,663,516
     Earned income on direct
      financing leases             31,024           508      50,645       1,702
     Interest                      11,376        36,574      56,740     128,609
     Gain on sale of equipment,
      net                          76,500          -        102,820      54,255
     Other                          3,930         3,634      12,282       7,867
                               __________    __________  __________  __________

                                  968,916     1,283,907   3,025,687   3,855,949
                               __________    __________  __________  __________

Expenses:
     Depreciation                 755,176     1,007,871   2,504,537   3,001,194
     Write-down of equipment 
      to net realizable value     158,116        14,039     312,816      45,401
     General and administrative    28,848        28,515      91,377      77,546
     General and administrative
      to related party             59,362        42,340     191,292     174,136
     Management fee to
      related party                38,628        62,223     125,686     183,366
     Loss on sale of equipment,
      net                            -           25,210        -           -   
                               __________    __________  __________  __________

                                1,040,130     1,180,198   3,225,708   3,481,643
                               __________    __________  __________  __________

Net income (loss)              $  (71,214)   $  103,709  $ (200,021) $  374,306
                               ==========    ==========  ==========  ==========

Net income (loss) per equivalent
  limited partnership unit     $    (2.38)   $     3.34  $    (6.66) $    12.18
                               ==========    ==========  ==========  ==========

Weighted average number of
  equivalent limited
  partnership units outstanding
  during the period                29,603        30,667      29,732      30,381
                               ==========    ==========   =========  ==========







     The accompanying notes are an integral part of these financial statements.

                                         3


                       FIDELITY LEASING INCOME FUND VII, L.P.

                           STATEMENT OF PARTNERS' CAPITAL

                    For the nine months ended September 30, 1998

                                    (Unaudited)

                                General     Limited Partners
                                Partner     Units      Amount         Total   
                                _______     _____      ______         _____   

Balance, January 1, 1998      $(30,664)    65,449   $10,399,498   $10,368,834

Cash distributions                (800)      -          (79,200)      (80,000)

Net loss                        (2,000)      -         (198,021)     (200,021)
                              ________     ______   ___________   ___________
Balance, September 30, 1998   $(33,464)    65,449   $10,122,277   $10,088,813
                              ========     ======   ===========   ===========






































     The accompanying notes are an integral part of these financial statements.


                                        4


                       FIDELITY LEASING INCOME FUND VII, L.P.

                              STATEMENTS OF CASH FLOWS

                For the nine months ended September 30, 1998 and 1997
                                     (Unaudited)
                                                      1998          1997   
                                                      ____          ____   
Cash flows from operating activities:
     Net income (loss)                           $ (200,021)    $  374,306
                                                 __________      _________
                                                                          
     Adjustments to reconcile net income (loss)
      to net cash provided by operating activities:
     Depreciation                                 2,504,537      3,001,194
     Write-down of equipment to 
      net realizable value                          312,816         45,401
     Proceeds from direct financing leases, net
      of earned income                              177,593          7,819 
     Gain on sale of equipment, net                (102,820)       (54,255)
     (Increase) decrease in accounts receivable     405,150        (58,872)
     (Increase) decrease in due from related
      parties                                       414,573          7,289 
     Increase (decrease) in lease rents paid
      in advance                                    (18,800)         1,755 
     Increase (decrease) in accounts payable - 
      equipment                                      (7,050)            -  
     Increase (decrease) in accounts payable
      and accrued expenses                          (51,253)         9,664 
     Increase (decrease) in due to related
      parties                                       (30,189)       (13,683)
                                                  _________     __________ 
                                                  3,604,557      2,946,312 
                                                  _________     __________ 
        Net cash provided by operating activities 3,404,536      3,320,618 
                                                  _________      _________ 
Cash flows from investing activities:
     Acquisition of equipment                    (3,936,282)    (2,643,930)
     Investment in direct financing leases       (1,934,591)          -    
     Proceeds from sale of equipment                404,090        246,287 
                                                  _________     __________ 
        Net cash used in investing activities    (5,466,783)    (2,397,643)
                                                  _________     __________ 
Cash flows from financing activities:
     Distributions                                  (80,000)      (470,000)
                                                  _________     __________ 
        Net cash used in financing activities       (80,000)      (470,000)
                                                  _________     __________ 
     Increase (decrease) in cash and  
      cash equivalents                           (2,142,247)       452,975 
     Cash and cash equivalents, beginning
      of period                                   3,185,012      2,983,264 
                                                 __________     __________ 
     Cash and cash equivalents, end of period    $1,042,765     $3,436,239 
                                                 ==========     ==========




     The accompanying notes are an integral part of these financial statements. 

                                         5


FIDELITY LEASING INCOME FUND VII, L.P.

NOTES TO FINANCIAL STATEMENTS

September 30, 1998
(Unaudited)

The accompanying unaudited condensed financial statements have been prepared
by the Fund in accordance with Generally Accepted Accounting Principles,
pursuant to the rules and regulations of the Securities and Exchange Commis-
sion.  In the opinion of Management, all adjustments (consisting of normal 
recurring accruals) considered necessary for a fair presentation have been
included.

1.  EQUIPMENT LEASED

    Equipment on lease consists primarily of computer equipment under operating
    leases.  The lessees have agreements with the manufacturer of the equipment
    to provide maintenance for the leased equipment.  The Fund's operating 
    leases are for initial lease terms of 24 to 60 months.  Generally, 
    operating leases will not recover all of the  undepreciated cost and 
    related expenses of its rental equipment during the initial lease terms and
    the Fund is prepared to remarket the equipment in future years.  Fund 
    policy is to review quarterly the expected economic life of its rental 
    equipment in order to determine the recoverability of its undepreciated 
    cost.  Recent and anticipated technological developments affecting computer
    equipment and competitive factors in the marketplace are considered among 
    other things, as part of this review.  In accordance with Generally 
    Accepted Accounting Principles, the Fund writes down its rental equipment
    to its estimated net realizable value when the amounts are reasonably 
    estimated and only recognizes gains upon actual sale of its rental 
    equipment.  As a result, $312,816 and $45,401 was charged to write-down of
    equipment to net realizable value for the nine months ended September 30,
    1998 and 1997, respectively.  Any future losses are dependent upon
    unanticipated technological developments affecting the computer 
    equipment industry in subsequent years.

    The Fund also has equipment leased under the direct financing method in
    accordance with Statement of Financial Accounting Standards No. 13.  This
    method provides for recognition of income (the excess of the aggregate 
    future rentals and estimated additional amounts recoverable upon expiration 
    of the lease over the related equipment cost) over the life of the lease
    using the interest method.

    The net investment in direct financing leases as of September 30, 1998 is 
    as follows:

       Net minimum lease payments to be received       $2,354,000
       Less unearned income                               302,000
       Add expected future residuals                         -   
                                                       __________

                                                       $2,052,000
                                                       ==========







                                          6


                       FIDELITY LEASING INCOME FUND VII, L.P.

                      NOTES TO FINANCIAL STATEMENTS (Continued)

1.  EQUIPMENT LEASED (Continued)

    The future approximate minimum rentals to be received on noncancellable
    operating leases and direct financing leases as of September 30, 1998 are 
    as follows:
                                                                Direct   
         Years Ending December 31          Operating           Financing 
        ________________________          _________           _________ 

                   1998                      $  812,000          $  149,000
                   1999                       2,616,000             596,000
                   2000                       1,298,000             596,000
                   2001                         740,000             455,000
                Thereafter                      756,000             558,000
                                             __________          __________
                                             $6,222,000          $2,354,000
                                             ==========          ==========

2.  RELATED PARTY TRANSACTIONS

    The General Partner receives 5% or 2% of gross rental payments from equip-
    ment under operating leases and full pay-out leases, respectively, for
    administrative and management services performed on behalf of the Fund.
    Full pay-out leases are noncancellable leases for which the rental payments
    due during the initial term of the lease are at least sufficient to recover 
    the purchase price of the equipment, including acquisition fees.  This 
    management fee is paid monthly only if and when the Limited Partners have 
    received distributions for the period from January 1991 through the end of 
    the most recent quarter equal to a return for such period at a rate of 12% 
    per year on the aggregate amount paid for their units.

    The General Partner may also receive up to 3% of the proceeds from the sale
    of the Fund's equipment for services and activities to be performed in con-
    nection with the disposition of equipment.  The payment of this sales fee 
    is deferred until the Limited Partners have received cash distributions 
    equal to the purchase price of their units plus a 12% cumulative compounded 
    priority return.  Based on current estimates, it is not expected that the 
    Fund will be required to pay this sales fee to the General Partner.

    Additionally, the General Partner and its parent company are reimbursed by 
    the Fund for certain costs of services and materials used by or for the 
    Fund except those items covered by the above-mentioned fees.  Following is 
    a summary of fees and costs of services and materials charged by the 
    General Partner or its parent company during the three and nine months 
    ended September 30, 1998 and 1997:

                                 Three Months Ended       Nine Months Ended
                                    September 30             September 30  
                                 1998          1997        1998        1997
                                 ____          ____        ____        ____

          Management fee       $38,628       $62,223    $125,686    $183,366
          Reimbursable costs    59,362        42,340     191,292     174,136




                                          7


                       FIDELITY LEASING INCOME FUND VII, L.P.

                      NOTES TO FINANCIAL STATEMENTS (Continued)

2.  RELATED PARTY TRANSACTIONS (Continued)

    The Fund maintains its checking and investment accounts in Jefferson Bank, 
    a subsidiary of JeffBanks, Inc., in which the Chairman of Resource America, 
    Inc. serves as a director.

    Amounts due from related parties at September 30, 1998 and December 31, 
    1997 represent monies due the Fund from the General Partner and/or other
    affiliated funds for rentals and sales proceeds collected and not yet re-
    mitted to the Fund.

    Amounts due to related parties at September 30, 1998 and December 31, 1997 
    represent monies due to the General Partner for the fees and costs 
    mentioned above, as well as, rentals and sales proceeds collected by the 
    Fund on behalf of other affiliated funds.

3.  CASH DISTRIBUTION

    There were no cash distributions made to partners for the three months
    ended September 30, 1998.





































                                          8


                       FIDELITY LEASING INCOME FUND VII, L.P.

Item 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

    Fidelity Leasing Income Fund VII, L.P. had revenues of $968,916 and
$1,283,907 for the three months ended September 30, 1998 and 1997, respec-
tively, and $3,025,687 and $3,855,949 for the nine months ended September 30, 
1998 and 1997, respectively. Rental income from the leasing of equipment 
accounted for 87% and 97% of total revenues for the third quarter of 
1998 and 1997, respectively and 93% and 95% for the nine months ended 
September 30, 1998 and 1997, respectively.  The decrease in revenues is 
primarily attributable to the decrease in rental income.  Rental income 
decreased during 1998 by approximately $1,855,000 because of equipment which 
came off lease and was re-leased at lower rental rates or sold.  This decrease, 
however, was reduced by an increase of approximately $995,000 of rental income 
realized from equipment purchases made since September 30, 1997 as well as 
rental income earned on 1997 equipment purchases for which a full nine months 
was earned in 1998 and only a portion of the nine months was earned in 1997. 
Additionally, the decrease in interest income caused by lower cash balances 
available for investment by the Fund also contributed to the decrease in total 
revenues. However, during the nine months ended September 30, 1998, the Fund 
recognized $102,820 of net gain on sale of equipment compared to $54,255 of 
net gain on sale of equipment for the same period in 1997.  Furthermore, in 
1998, the Fund invested in approximately $1,935,000 of direct financing leases
which increased the earned income on direct financing leases in 1998.  These 
increases in revenues mitigated the overall decrease in revenues from 1997.

    Expenses were $1,040,130 and $1,180,198 for the three months ended Septem-
ber 30, 1998 and 1997, respectively, and $3,225,708 and $3,481,643 for the nine
months ended September 30, 1998 and 1997, respectively.  Depreciation expense
comprised 73% and 85% of total expenses for the third quarter of 1998 and 1997,
respectively and 78% and 86% of total expenses for the nine months ended 
September 30, 1998 and 1997, respectively.  The decrease in expenses in 1998 is 
primarily related to the decrease in depreciation expense because of equipment 
which came off lease or terminated and sold since September 1997.  
Additionally, the management fee to related party decreased in proportion 
to the decrease in rental income in 1998 which also accounts for the overall 
decrease in expenses. However, based upon the quarterly review of the 
undepreciated cost of rental equipment, the Fund incurred a write-down of 
equipment to net realizable value of $312,816 for the nine months ended 
September 30, 1998 compared to $45,401 for the nine months ended 
September 30, 1997.  The increase in this account lowered the overall 
decrease in expenses in 1998. Any future losses are dependent upon 
unanticipated technological developments affecting the computer equipment
industry in subsequent years.

    The Fund's net income (loss) was ($71,214) and $103,709 for the three 
months ended September 30, 1998 and 1997, respectively, and ($200,021) and 
$374,306 for the nine months ended September 30, 1998 and 1997, respectively.  
The earnings (loss) per equivalent limited partnership unit, after earnings 
(loss) allocated to the General Partner, were ($2.38) and $3.34 based on a 
weighted average number of equivalent limited partnership units outstanding of 
29,603 and 30,667 for the three months ended September 30, 1998 and 1997, 
respectively.




                                         9


                       FIDELITY LEASING INCOME FUND VII, L.P.

Item 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS (Continued)

RESULTS OF OPERATIONS (Continued)

The earnings (loss) per equivalent limited partnership unit, after earnings 
(loss) allocated to the General Partner, were ($6.66) and $12.18 based on a 
weighted average number of equivalent limited partnership units outstanding of 
29,732 and 30,381 for the nine months ended September 30, 1998 and 1997, 
respectively.

    The Fund generated $765,578 and $1,150,829 of cash from operations,
for the purpose of determining cash available for distribution for the quarter
ended September 30, 1998 and 1997, respectively.  For the nine months ended 
September 30, 1998 and 1997, the Fund generated $2,514,512 and $3,366,646 of 
cash from operations, respectively.  It is the Fund's policy to make cash 
distributions in accordance with the net income earned by the Fund. There were 
no cash distributions made to partners for the first nine months of 1998.  
However, $80,000 of cash distributions were paid during the first quarter of 
1998 for the months of October and November of 1997.  For financial statement 
purposes, the Fund records cash distributions to partners on a cash basis in 
the period in which they are paid.  For the three months ended September 30, 
1997, the Fund distributed 4% of cash available from operations during the 
quarter and 8% subsequent to September 30, 1997.  For the nine months ended 
September 30, 1997, the Fund distributed 10% of cash available from operations 
during the period and 3% of this amount subsequent to September 30, 1997.

ANALYSIS OF FINANCIAL CONDITION

    During the nine months ended September 30, 1998 and 1997, the Fund 
purchased $3,936,282 and $2,643,930, respectively, of equipment.  The Fund also 
invested $1,934,591 in direct financing leases during the nine months ended 
September 30, 1998.  The Fund will continue to purchase equipment with cash 
available from operations which is not distributed to partners.

    The cash position of the Fund is reviewed daily and cash is invested on a
short-term basis.

    The Fund's cash from operations is expected to continue to be adequate to
cover all operating expenses and contingencies during the next twelve month 
period.


















                                         10


Part II:  Other Information


                       FIDELITY LEASING INCOME FUND VII, L.P.

                                 September 30, 1998

Item 1.  Legal Proceedings:  Inapplicable.

Item 2.  Changes in Securities:  Inapplicable.

Item 3.  Defaults Upon Senior Securities:  Inapplicable.

Item 4.  Submission of Matters to a Vote of Securities Holders:  Inapplicable.

Item 5.  Other Information:  Inapplicable.

Item 6.  Exhibits and Reports on Form 8-K:

          a) Exhibits:  EX-27

          b) Reports on Form 8-K:  None







































                                         11


                                     SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the regis-
trant has duly caused this report to be signed on its behalf by the under-
signed, thereunto duly authorized.

                       FIDELITY LEASING INCOME FUND VII, L.P.




                      By:  Freddie M. Kotek
                 _____________________________
11-9-98          Freddie M. Kotek
_______          President of F.L. Partnership Management, Inc.
           Date           (Principal Operating Officer)




                      By:  Marianne T. Schuster
11-9-98          ____________________________
_______          Marianne T. Schuster
 Date            Vice President of F.L. Partnership Management, Inc.
                          (Principal Financial Officer)




































                                         12

                                     SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the regis-
trant has duly caused this report to be signed on its behalf by the under-
signed, thereunto duly authorized.

                       FIDELITY LEASING INCOME FUND VII, L.P.




                           _____________________________
          Date             Freddie M. Kotek
                           President of F.L. Partnership Management, Inc.
                           (Principal Operating Officer)




                           _____________________________
          Date             Marianne T. Schuster
                           Vice President of F.L. Partnership Management, Inc.
                           (Principal Financial Officer)







































                                         12