Bankruptcy stays on your credit report for 10 years which can make buying cars, homes and other things more difficult and expensive.
Chapter 7 is used when you want a totally clean slate. The objective is usually for the court to declare you unable to pay your debts and all debts are eliminated. This is a last resort if you have very little left to lose.
Chapter 13 is more appropriate if you have things you don’t want to lose but your income cant cover your expenses. The goal is for the court to help you restructure the payments; sometime some are forgiven or reduced, so that you can afford to pay them. Hopefully you can keep your assets but you will have to be able to make reasonable payments. If the court ordered payments are not made your assets can be taken.
Certain debts, like student loans, are not affected by bankruptcy