Chapter 13 bankruptcy allows a debtor to keep their assets, such as a home or car, by creating a repayment plan to pay off their debts over a three to five year period. Chapter 7 bankruptcy, on the other hand, requires the debtor to liquidate their assets in order to pay off their debts. Additionally, Chapter 13 bankruptcy can provide an opportunity for a debtor who is behind on mortgage or car payments to catch up on those payments over the repayment plan period, while under Chapter 7 bankruptcy, if a debtor is behind on secured debts (such as a ...