Chapter 7 bankruptcy stops collection activity and wipes out unsecured debt. It stops foreclosure and repossessions. It allows you to return cars and houses without owing a deficiency balance. Some debts are not discharged in a Chapter 7 bankruptcy such as child support, alimony, accidents where drugs or alcohol were involved, most student loans and... 

The chapter 13 bankruptcy allows you to set a repayment plan paying your secured creditors, such as house, car or furniture and catching up those payments that are behind while protecting necessary property. The Unsecured creditors, credit cards, medical bills, check advances/payday loans are paid back at a percentage of the debt from 0% to 100% with...