What's the difference between "Chapter 7" and "Chapter 13" bankruptcy?

What's the difference between "Chapter 7" and "Chapter 13" bankruptcy?

Janet Bodnar (Deputy Editor, Kiplinger’s Personal Finance) gives expert video advice on: Who is eligible to file for personal bankruptcy?; How do I file for bankruptcy?; How long will filing for bankruptcy impact my credit rating? and more...

Chapter 7 and Chapter 13 are two different types of bankruptcy. In Chapter 7, whatever assets you may have available are sold to satisfy your creditors to whatever extent that's available. If it's 10 cents on the dollar, that's fine. Whatever can't be satisfied is discharged, you don't have to worry about repaying it. In Chapter 13 bankruptcy, there's a repayment plan. You actually do have to set up a plan, usually lasting from three to five years, that involves repayment of your creditors to a greater extent than in Chapter 7. In Chapter 7, some of your creditors may get nothing. In Chapter 13, there's probably going to be some form of payment to most, if not all, of your creditors.