What assets do you lose in chapter 7 bankruptcy? 4 Answers as of November 05, 2010It is my understanding that in chapter 7 bankruptcy, you lose some assets to help pay off your debts, but you do not lose your house and personal possessions and such. But if you do not lose those things, what do you lose?
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What assets you lose or can keep depends on the value of the assets and what exemptions you have available to you under applicable state or federal laws. Which state's exemption laws apply to your case depends on where you resided for the 2 years prior to filing your case. Each state protects different amounts in different assets, so you need to first ascertain which states laws apply to your case, and then find out what those laws are. The best way to do this is consult with a qualified bankruptcy attorney.
Answer Applies to: California