The assets you keep in Chapter 7 depend entirely on your state's exemption laws. Every state has a list of property types and dollar amounts that are protected ("exempt") from creditors in bankruptcy. Property that's exempt stays with you. Property that's not exempt can be sold by the bankruptcy trustee to pay your creditors.

Common exemptions (varies by state):

Homestead exemption: This protects equity in your primary residence. Some states are extremely generous: Texas and Florida have unlimited homestead exemptions (you can keep a multimillion-dollar home). Others are modest: New Jersey's is about $0 under state law (though you can use the federal exemption of about $27,900 if your state allows it). Many states fall in the $50,000 to $250,000 range.

Vehicle exemption: Most states exempt $2,500 to $7,500 in vehicle equity. Some states like Missouri allow up to $15,000. If your car is worth $12,000 and you owe $9,000 on it, your equity is $3,000. If your state's exemption covers at least $3,000, you keep the car.

Personal property: Household goods, clothing, appliances, and furniture are usually exempt up to a certain total value. Federal exemptions allow about $14,875 total for household goods and $1,875 per item. Most people's household possessions easily fit within these limits.

Retirement accounts: 401(k)s, 403(b)s, IRAs, and most employer-sponsored retirement plans are fully protected under federal law (ERISA), regardless of state exemptions. Traditional and Roth IRAs are exempt up to about $1.5 million (this limit is adjusted periodically). Your retirement savings are almost certainly safe.

Tools of the trade: Equipment, tools, and supplies you need for your job or business are typically exempt up to $2,500 to $7,500 depending on the state.

Wildcard exemption: Some states (and the federal exemption set) include a "wildcard" that lets you protect any property up to a certain dollar amount. The federal wildcard is about $1,475 plus up to $13,950 of any unused homestead exemption. This is useful for protecting cash, tax refunds, or other property that doesn't fit into a specific category.

Federal vs. state exemptions: About 20 states let you choose between their state exemptions and the federal exemption set. The other 30 states require you to use state exemptions only. A bankruptcy attorney can help you determine which set protects more of your property.

In reality, most Chapter 7 filers keep everything they own. About 95% of cases are "no asset" cases because the filer's property is either fully exempt or worth so little that the trustee doesn't bother liquidating it.