Generally a person who has fallen behind in their house or car payment and who wishes to keep these assets benefits most from the reorganization possibilities available under Chapter 13. Under Chapter 11, the debtor must work more closely with creditors in arriving at a plan of reorganization. Because of the time and expense associated with a Chapter 11 case, generally only businesses file them but they are available to individuals. It stops the sheriff from serving executions against property, and prohibits all collection attempts. Regardless of what Chapter you file under, the ultimate goal is a discharge.
Some people claim that a discharge eliminates the debt.
This is not true. A discharge elimates the debtor's personal liability for a debt but anyone who owes the debt, but does not file for bankruptcy, remains fully liable for the debt. This is the case when parents co-sign loans for their children and partnership debts. Not all debts are dischargeable . The law defines the debts which must be paid even if a bankruptcy is filed.