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The biggest difference between Chapter 7 and Chapter 13 is that Chapter 7 focuses on discharging (getting rid of) unsecured debt such as credit cards, personal loans and medical bills while Chapter 13 allows you to catch up on secured debts like your home or your car while also discharging unsecured debt.

Chapter 7 looks at the assets you own at the moment your case is filed, protects those assets which are “exempt”— generally everything you own—and discharges most or all of your debts.

Chapter 13 also looks at your financial life as of when your case is filed but focuses more on a repayment plan to deal with any secured debt (house, car etc) that you are behind on while also discharging most or all of your unsecured debts.

Summarizing Chapter 7 vs. Chapter 13 Bankruptcy

Generally, Chapter 7 is more appropriate for simple cases while Chapter 13 for more complicated bankruptcies. Or somewhat more accurately, Chapter 13 can give you more power over and flexibility with certain kinds of creditors, and if you have non-exempt assets. However, if you do not have those kinds of debt or assets, or not much in terms of tangible assets, then Chapter 7 would likely be the faster and easier option.