Chapter 7 may be the best option for those with little or no income. After qualifying for Chapter 7, you are required to liquidate all nonexempt assets and property as a means to repay creditors. After which, any remaining debt will be discharged and you can have a debt free start.Chapter13
Chapter 13 is the best option for individuals with a steady income. If you have verifiable, reliable income, creditors will work with you to set up a repayment plan. The payment plans usually last between three to five years. During this time you are required to make regular timely payments. The remaining debt will be discharged at the end of the repayment period.