Individual debtors are allowed to keep some assets in a Chapter 7 bankruptcy.

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In Chapter 7 bankruptcy, individual debtors are allowed to keep some assets that are protected under state or federal law. These assets are referred to as "exempt" property and can include items such as a primary residence, a certain amount of equity in a car, household goods, and certain retirement accounts. However, non-exempt assets may be liquidated to pay off creditors.

Individual Debtors Are Allowed to Keep Some Assets in a Chapter