Ch. 7 is a liquidation, where your unsecured debts are discharged and not owed on anymore. Secured debts can be reaffirmed in some cases. This is the one that’s almost impossible to do now.

Ch. 13 is for debt restructuring. There’s a formula they use to see how much money monthly you can afford to pay back. If, when using this terrible formula created by the IRS, you can afford to repay even $100 per month, you must file Ch. 13 and settle out your debts, over a maximum 5 year period.

The dirty secret that no one talked about before the law changed, is that 4 out of 5 people who filed Ch. 13 BEFORE the change, failed. You miss one payment and the whole thing can get derailed. God help you if you lose a job, get injured, whatever.

There are also some "means" tests, where your income is compared to the average income for your area. If you make very little money, you may still qualify for a Ch. 7.

And yes, I believe that before anyone can file a BK now, you must meet with a non-profit credit counselor first.

Call a few BK attorneys. Get quotes on prices, and meet with a couple that are cheap but seem knowledgable. Most will give you at least a 30 minute consultation at no charge, in hopes of earning your business.

Do yourself a favor and research the subject before you make a move. It really is a last resort and there could be alternatives. This website has a lot of information, useful links etc.

Good luck!