The main difference between chapter 7 and chapter 13 is that under chapter 7, the debtor’s nonexempt property (if any exists) is liquidated to pay off any of the debtor’s debts, while in most chapter 13 cases a portion of the debtor’s future income is used to pay off as much debt as possible considering the circumstances.
Practically speaking, under chapter 7 the debtor loses all or most of his or her nonexempt property and receives a chapter 7 discharge, which completely removes most of the debts. Under chapter 13, the debtor usually gets to keep their nonexempt property, and must pay off as much of their debts as the court deems feasible. Afterwards, they receive a chapter 13 discharge, which is broader than a chapter 7 discharge and releases the debtor from liability for several types of debts that are not dischargeable under Chapter 7.
However, a chapter 13 plan normally lasts 3 to 5 years while a normal chapter 7 only lasts around 3 months. Additionally, a chapter 13 is almost always more expensive for the debtor.