What is a Chapter 7 and a Chapter 13 bankruptcy?

Chapter 7 - The chapter of the Bankruptcy Code providing for “liquidation”.
(i.e., the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.)


Chapter 13 - The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income.
(Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)