Short Answer: If your income and assets don’t push you into a Chapter 13, and if you’re not behind on a house or car that you want to keep, you can file a Chapter 7. Otherwise, you and your bankruptcy attorney will discuss filing a Chapter 13.
Longer Answer: Both Chapter 7 and Chapter 13 are available to most bankruptcy clients. The primary difference between the two chapters is a Chapter 7 is shorter and does not require paying creditors anything, while Chapter 13 runs the course of a few years and does include a small payment to your creditors. While you may be ‘forced’ to file a Chapter 13 if your income or assets exceed the allowable amounts in bankruptcy under the Means Test, you may also choose to file a Chapter 13 to force your creditors to let you get caught up on mortgage payments, car payments, and taxes.
Additional Reading: Which Chapter To File