Under Chapter 7, your unsecured debts are discharged, meaning you no longer are responsible for that debt, while the secured debt remains virtually unchanged. Generally a person who has little or no secured debt and no tax or student loan obligations are the best candidates for Chapter 7. 

Under Chapter 13, you restructure your secured debts to make them easier to pay and allows you to pay less than 100% of you unsecured debt. Generally a person who has fallen behind in their house or car payment and who wishes to keep these assets benefits most from the reorganization possibilities available under Chapter 13. 

Under Chapter 11, the debtor must work more closely with creditors in arriving at a plan of reorganization. Because of the time and expense associated with a Chapter 11 case, generally only businesses file them but they are available to individuals. 

Immediately upon filing either a Chapter 7 or a Chapter 13 case, the law provides for an automatic "stay" to prevent a rush of creditors seeking to grab as much of the estate as possible. This "stay" stops foreclosure and repossession actions. It stops the sheriff from serving executions against property, and prohibits all collection attempts. The "stay" may be terminated under certain cercumstances, but usually lasts until the discharge is granted in a Chapter 7 or until the plan is completed in a Chapter 13. 

Regardless of what Chapter you file under, the ultimate goal is a discharge. Some people claim that a discharge eliminates the debt. This is not true. A discharge elimates the debtor's personal liability for a debt but anyone who owes the debt, but does not file for bankruptcy, remains fully liable for the debt. This is the case when parents co-sign loans for their children and partnership debts. Not all debts are dischargeable. The law defines the debts which must be paid even if a bankruptcy is filed. 

Filing a bankruptcy does not mean that you have to give up all of your property. The debtor is allowed to claim certain property as exempt from the bankruptcy. This means that the debtor retains those assets. In Wisconsin, the debtor can choose whether to use the state exemptions or the federal exemptions. These exemption may vary greatly and the debtor must look closely at his or her personal situation to determine which exemptions will be the most beneficial. 

There are many decisions to be made prior to filing a bankruptcy. While it is possible to file without the assistance of an attorney, it is usually not adviseable. An attorney who is experienced in bankruptcy law will make certain that you do proper pre-bankruptcy planning, select the proper chapter and take all of the exemptions to protect the maximum amount of your assets from creditors. It can also be reassuring to have an attorney with you at any court hearings which are necessary.