Chapter 7 Definition

• Chapter 7 bankruptcy allows most debts to be permanently forgiven, according to the U.S. Bankruptcy Courts website. However, most assets such as savings accounts or home equity must be relinquished.
  
  

Chapter 13 Definition

• Chapter 13 bankruptcy restructures debts into a repayment plan and often reduces the amount actually owed, according to the U.S. Bankruptcy Courts website. Assets such as home equity or stocks can usually be retained.
  
  

Credit Reporting

• A Chapter 7 bankruptcy will be reflected on the debtor's credit reports for 10 years, while Chapter 13 cases are reported for seven years. However, anyone can look up a debtor's name through the U.S. Bankruptcy Courts system for life.
  
  

Student Loans

• Most government-issued student loans may not be included in either Chapter 7 or Chapter 13 bankruptcy, according to the U.S. Bankruptcy Courts website. Some exemptions apply, such as if a judge accepts a debtor's disability claim or the college has since closed.
  
  

Priority Debts

• Other priority debts that cannot be liquidated or restructured through either individual bankruptcy option include taxes less than three years old, court fines, lawsuits related to drunken driving, child support, and alimony.