Is there a difference between bankruptcy and medical bankruptcy?

What is the difference in Chapter 13 and Chapter 7 bankruptcy?

• Please give answers that are EASY to read and not the ones that I can search online w/ tons of legal jargon. I am trying to really understand this.. questions I have are: what's the difference? which one can you keep your cars in? which one would one need to eliminate credit card debt only?

• Answer:

  There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7. Each must be filed in federal bankruptcy court. As of 2000, the fees for seeking bankruptcy relief are $160: a filing fee of $130 and an administrative fee of $30. Attorney fees are additional. Chapter 13 allows persons with a steady income to keep property, like a mortgaged house or a car, that they otherwise might lose. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off a default during a three-to-five-year period, rather than surrender any property. After you have made all payments under the plan, you receive a discharge of your debts. Known as straight bankruptcy, Chapter 7 involves liquidation of all assets that are not exempt. Exempt property may include automobiles, work-related tools and basic household furnishings. Some of your property may be sold by a court-appointed official ,a trustee or turned over to your creditors. You can receive a discharge of your debts through Chapter 7 only once every six years.