Through years of practice, I have lost track of how many times I am asked the question, “What is the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy, and what is the best option for me?” Every time that I am asked that question, I give the same response. Chapter 13 bankruptcy is a repayment plan, while Chapter 7 is a liquidation bankruptcy. Interestingly enough, every client knows that such a simple answer must carry with it certain complexities. They are right! It is not always that simple.