The difference between a Chapter 7 and Chapter 13 bankruptcy is which of the following? There is no difference. In a Chapter 7 banknuptcy the debtor's non-exempt assets are divided among the debtor's creditors - whereas in a Chapter 13 bankruptcy the debtor makes payments to creditors over a period of time. One is filed in federal court and one is filed in state court. In a Chapter 13 bankruptey the debtor's non-exempt assets are divided among the debtor's creditors - whereas in a Chapter 7 bankruptcy the debtor makes payments to creditors over a period of time