You might decide on Chapter 13 instead of Chapter 7 if your debt consists of secured loans (like car loans) that you wish to continue paying. Chapter 7 bankruptcy requires you to give up some liquid assets, but if you want to retain some of your liquid assets, Chapter 13 could be a better option. Also, if your income is above the median (for your state and family size), you won’t be able to file Chapter 7 bankruptcy.
In filing Chapter 13, according to the U.S. Bankruptcy Code, you may not have more than $922,975 secured debt and $307,675 unsecured debt. Unsecured debt includes things like credit card debt and medical loans.
As in Chapter 7 bankruptcy, you must use an approved credit counseling agency to receive credit counseling from.