Chapter 13 bankruptcy is designed for working folks who need a payment plan to bring their debts current and pay them off over time. It stops all creditor action and prevents foreclosures, garnishments, repossessions and phone calls.
Chapter 7 Bankruptcy
Often called a full bankruptcy or fresh start, a Chapter 7 bankruptcy erases the debt and allows you to start over. You can keep your financed items like a home or car, so long as you are up to date on your payments, the creditors agree and your equity in those items is not more than the state-allowed exemptions.