What are the differences between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy is intended for people who earn less than the median state income. Most property in a Chapter 7 bankruptcy is exempt, which simply means that it’s protected from creditors. In most cases, a debtor whose income is above the median Colorado income will need to file a Chapter 13 Bankruptcy. In a Chapter 13 Bankruptcy, you are required to repay your creditors over a three-to-five-year period.