Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - What's the difference if filing Chapter 13 bankruptcy vs Chapter 7? Or should I just foreclose on my home? - Basically Chapter 13 is a repayment plan, where you will be paying back the debt over the course of 5 years. The payment amount can be between 10%-100% of the original debt. Chapter 7 is where the unsecured debt such as credit card are dismissed, and the assets are liquidated to pay off the creditors.

If you can afford to keep the house, then you should look to keep it through Chapter 13 bankruptcy code. -