by 
The Curious Bag
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There are several differences between Chapter 7 and Chapter 13 bankruptcies. Both allow people relief from their debts, but the big difference lies in how this relief is obtained and the debts repaid.
Similarities
Both chapters are for individuals or married couples. Both require detailed information about their debts and assets to be filed with the U.S. Bankruptcy Court.
Chapter 7
Chapter 7 bankruptcies call for a debtor's non-exempt assets to be sold and the proceeds distributed to creditors, thus discharging the debts, according to Bankruptcy Basics, a website of U.S. Courts. Bankruptcy laws allow each state to decide what property is exempt from liquidation.
Discharge of Debts
Not all debts may be discharged in a Chapter 7 bankruptcy. These debts include alimony, child support and certain taxes, and must still be paid, Bankruptcy Basics notes.
Chapter 13
Chapter 13 bankruptcies are for individuals who want to repay their debts, usually over a three- to five-year span, says Bankruptcy Basics.
Saving the Family Home
Unlike Chapter 7, a Chapter 13 bankruptcy allows a debtor to keep his house, though it is still subject to foreclosure if the debtor falls behind in payments again, Bankruptcy Basics says.
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