Generally speaking, Chapter 7 is most attractive to consumers with large amounts of unsecured debt, such as credit card bills or medical bills that they cannot afford to pay off. These debts can be wiped away by the bankruptcy court, often without requiring the debtor to sell off any assets. Chapter 13 is more attractive to a homeowner facing foreclosure, or debtors with significant non-exempt assets which they desire to keep. In order to be successful in a Chapter 13 debt adjustment, you should have a steady job and some amount of disposable income which you can apply to a monthly payment plan.
Always consult with a qualified and experienced bankruptcy attorney before deciding which Chapter to file. Your attorney will want to know your entire financial situation, including your income, types of assets, and the nature and amounts of your debts, in order to give you the best advice about which route is best for you.