If you are not able to pay your monthly expenses and your bills, then Chapter 7 may be the right option. Chapter 7 is a “quick bankruptcy” that gets rid of credit cards, medical bills and other personal loans (unsecured debt).
Chapter 13 allows individuals to save their houses and businesses. Under Chapter 13, you have up to five years to “catch up” on debt that needs to be paid (house arrears, taxes). In addition, a second mortgage can be avoided by filing a Chapter 13 Bankruptcy.