Chapter 13 bankruptcy allows most filers to retain much of their property. Instead of liquidating your assets to pay your creditors, you’ll develop a new repayment plan based on your current income. Chapter 13 allows you to reorganize your debt and may reduce the total amount you have to pay. On the other hand, in a Chapter 7 bankruptcy, various types of property could be subject to liquidation or sale as a way to repay creditors. Chapter 7 is often reserved for those who have little or no ability to repay debts in the future, such as those who don’t have income.