What Assets Can You Keep When Filing Bankruptcy?

Although some bankruptcy laws are governed by federal law, specific states vary on what property you are allowed to keep after you file bankruptcy.
Chapter 7 bankruptcies eliminate most debts but limit what personal property you can keep, while a Chapter 13 bankruptcy allows you to keep more of your property but does require you to continue to pay off your debts.

House

Most states have a form of homestead exemption that allows you to stay in your house provided you stay current on your mortgage.

Car

You may be able to keep your car after filing bankruptcy but will likely need to reaffirm your auto loan.

Clothing

All states will allow you to keep an adequate amount of your clothing.

Household Items

All states either explicitly state that you can keep your furniture and appliances or provide a "wildcard exemption" under which you can keep your furnishings.

Social Security, Disability, and Veterans Benefits

Generally, you will be allowed to keep your Social Security, Disability, and Veterans' benefits after filing bankruptcy.

Child Support and Alimony

You will be allowed to keep your child support and alimony payments after filing bankruptcy.

Work-Related Items

You will generally be allowed to keep any tools of the trade necessary to perform your job.