The most common forms of bankruptcy used by most ordinary consumers are Chapter 7 and Chapter 13. In a common Chapter 7, the debtor (you) wipes out his or her debts without offering to pay on them. There are certain restrictions to Chapter 7 concerning amounts of property and income. In a Chapter 13, a debtor reorganizes his or her finances by paying some of the debt back over a three to five year period by making payments to the bankruptcy trustee. A Chapter … Learn More about Chapter 7 vs. Chapter 13