Chapter 7 is not a payment plan, chapter 13 is a payment plan. That is the biggest difference. A chapter 7 lasts usually around only 4 months from beginning to end. A chapter 13 usually lasts about 3 to 5 years from beginning to end. There are many reasons to file either a chapter 7 or a chapter 13. To file a chapter 7, your income has to be low enough to qualify. That income level changes, and depends on where you live and how many kids you have and if you are married or not. Even if you are filing alone, your spouses income counts too. A chapter 13 is filed mainly for two reason, either to stop a foreclosure/repo, or because your income is too high to file a chapter 13. There are many exceptions and other reasons as well, but this is the general idea.
Call us to schedule a free consultation with a bankruptcy lawyer if you live in or around Houston and see which one is right for you, if any. You might not even need to file bankruptcy, we can help you determine that too at the free consultation.