Chapter 7 and Chapter 13 are the two main types of bankruptcy. Chapter 7 bankruptcy is intended for people who cannot pay their debts and need to receive a discharge for some or all of their debts to get a fresh start. In Chapter 7 bankruptcy, most of the petitioner's assets are sold off to pay creditors.
Chapter 13 bankruptcy is for people who will be able to pay off their debts eventually but need time to organize their assets. People who file for Chapter 13 bankruptcy have three to five years to pay off their debt in accordance with a plan approved by the bankruptcy court.