What distinguishes Chapter 7 bankruptcy from Chapter 13 bankruptcy for individual filers?

Chapter 7 (often called 'straight bankruptcy') is the faster and simpler option: a bankruptcy trustee liquidates non-exempt assets (most filers have few or no non-exempt assets), and most unsecured debts (credit cards, medical bills, personal loans) are discharged, typically within three to six months. Eligibility requires passing a means test based on income. Chapter 13 allows debtors to keep all property (including homes in foreclosure or cars facing repossession) in exchange for committing to a three to five year repayment plan supervised by the court. Neither chapter discharges student loans (except in rare cases of undue hardship), alimony, child support, recent taxes, or criminal fines.