Chapter 7 bankruptcy, often called "liquidation bankruptcy", is designed for people who don’t make enough money to repay their debts. Chapter 7 can wipe out credit card debt, medical bills, and unsecured personal loans.
A Chapter 13 is a voluntary bankruptcy that allows individuals with regular income to create a three-to-five-year repayment plan. This type of bankruptcy is designed for individuals who have stable income but are struggling to keep up with their payments, including their mortgage