Chapter 7
"Chapter 7 of the United States Bankruptcy Code is the Bankruptcy Code's 'liquidation' chapter. Lawyers sometimes refer to it as a 'straight bankruptcy.' It is used primarily by individuals who wish to free themselves of debt simply and inexpensively, but may also be used by businesses that wish to liquidate and terminate their business." - United States Bankruptcy Court, Western District of Wisconsin Website.
Find out more about Chapter 7 bankruptcies here.
Chapter 13
"A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. . . . Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time." United States Bankruptcy Court, Western District of Wisconsin Website.
Find out more about Chapter 13 bankruptcies here.
The Federal Judiciary has also put together a helpful series of online videos introducing the major concepts of bankruptcy which can be found here.