Most people are familiar with Chapter 7 liquidation, sometimes called straight bankruptcies. The basic difference between a Chapter 13 case and a Chapter 7 is that in a Chapter 7 case the individual’s nonexempt property (if any) is liquidated (i.e. sold) to pay as much as possible toward the debts, while in a Chapter 13 case a portion of the debtor’s future income is used to pay as much of the debts as is feasible under the circumstances. In a Chapter 13 case, the debtor usually keeps all of their property.