Chapter 7 - the most common form of bankruptcy, sometimes referred to as “straight bankruptcy”, can give you a discharge of all of your unsecured debts (i.e. credit cards, medical bills) with some exceptions (most notably student loans). The basic idea of a Chapter 7 is to provide an individual or couple the opportunity to receive a “fresh start”.

Chapter 13 - also known as “reorganization” or “debt adjustment”, Chapter 13 lets you put together a plan to repay all or a portion of your debts over time (typically 36-60 months), while keeping your creditors from taking collection action against you. The most common reason for filing a Chapter 13 is to prevent foreclosure of a home. Chapter 13 can also prevent repossession of vehicles, and in most cases - even get it back from the repo man.