A Chapter 7 bankruptcy is a new beginning for individuals, partnerships and corporations, that can no longer repair their financial situation. This is the most common form of bankruptcy and involves the liquidation of personal property. Most or all of your assets are sold and the proceeds are distributed to creditors.
Chapter 13 is particularly useful for those who have equity in a home or other property they want to keep. This form of bankruptcy is for individuals with regular a income who can pay their debts but can not agree to the conditions designed and imposed by their creditors .