A Chapter 7 Bankruptcy is a filing that permits the debtor to have a discharge of their debt. This means they no longer have a personal obligation to pay back that debt to the creditors. However, if a debtor does have a car or home they will have to continue to pay those debts to retain that property. This filing is available only to those who have an income below a certain local standard set by the Court
Chapter 13 Bankruptcy is a structured repayment plan of debt for a period of either 3 or 5 years. Over that time period the debtor pays a bankruptcy payment which goes to their creditors to whom they owe money. Chapter 13 is generally filed for two reasons. First, the debtor has more income than is allowed to file a Chapter 7. Second, to use bankruptcy to make up missed payments on a home or car loan. Making up on those missed payments will get you current so that you can keep your property.