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The biggest difference between Chapter 7 and Chapter 13 is that Chapter 7 focuses on discharging (getting rid of) unsecured debt such as credit cards, personal loans and medical bills while Chapter 13 allows you to catch up on secured debts like your home or your car while also discharging unsecured debt.

If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don't have the option of filing Chapter 7.

The bankruptcy court requires all filers to pay a filing fee. The filing fee for Chapter 7 bankruptcy cases is $335 and the filing fee for a Chapter 13 filing is $310. You can often pay your filing fee in installments over the course of a few months if you have a financial hardship.

A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in ance with the provisions of the Bankruptcy Code.

ESR is an online tool to help individuals complete a Chapter 7 bankruptcy petition when they have decided to file bankruptcy without an attorney. Debtors can prepare their bankruptcy petition, schedules, and statements and then electronically submit the forms to the bankruptcy court.

The solution may be Chapter 7, which discharges debts but also liquidates assets though not all of a person's assets. Chapter 13 bankruptcy allows a person to keep their assets, but puts them on a strict repayment plan. No matter which type you file for, the court puts an ?automatic stay? on any foreclosure action.