If I file for Chapter 7 Bankruptcy, what can I keep?

People who file for bankruptcy protection under Chapter 7 do so because they cannot manage their debt without assistance. While Chapter 7 is technically liquidation bankruptcy, it does not mean that the applicant must sell everything that he or she owns. Fortunately, bankruptcy law allows some property to be exempt from the liquidation process, which can include:

•Vehicles up to a certain value

•Necessary clothing

•Necessary household goods

•Household appliances


•Money from a personal injury lawsuit

•Jewelry up to a certain value

•Tools of the trade

•Some equity in the home

•Public assistance

•Potion of unpaid but earned wages

Bankruptcy allows applicants to escape the heavy burden of unmanageable debt while still keeping property needed for everyday life.