Chapter 13 bankruptcy and Chapter 7 bankruptcy are both common types of bankruptcy. Chapter 7 bankruptcy differs from Chapter 13 in that it intends to quickly discharge and eliminate debt that is not backed by collateral, which includes, for example, small loans, credit card debt, and medical debt. Chapter 13 bankruptcy is reserved for individuals with income and focuses on creating a payment plant to tackle debt, while Chapter 7 focuses on debt liquidation. To qualify for Chapter 7, debtors must pass a means test that compares their income against statewide median income levels.