How Bankruptcy Works
In Chapter 7 bankruptcy, commonly called “liquidation” bankruptcy, you discharge most or all of your debts. However, you may have to give up some of your property (although most debtors keep most of their property).
In Chapter 13 bankruptcy, commonly called “reorganization” bankruptcy, you keep your property. However, you must repay some debts in full, and others in part through a repayment plan that lasts either three or five years.