What differentiates Chapter 13 from Chapter 7 the most?
The plan payment does. In Chapter 7, there is no payment. There is a trustee but the trustee’s job in a Chapter 7 is defined in non-exempt assets. So, the Chapter 7 trustee is looking for the things that you can own and he can sell, then turn in the money and pay the creditors with it. The Chapter 13 trustee is not going to sell anything. The Chapter 13 trustee is going to collect the monthly payments from you and then, use that money to pay your creditors. Interesting tidbit as well if you do have non-exempt assets that you would lose in a chapter 7, you can file a Chapter 13. As long as you pay your unsecured creditors at least as much as they would have received in a hypothetical Chapter 7, you can keep those non-exempt assets and pay your creditors back over the time. And it’s more rare, in my practice, but that is another reason why somebody would choose a Chapter 13 over a Chapter 7 if they have a non-exempt asset that they want to achieve.