You generally lose all your assets in straight bankruptcy and keep about half of them in a wage-earner plan.

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In a straight bankruptcy (Chapter 7), some assets may be exempt and not subject to liquidation, while in a wage-earner plan (Chapter 13), the debtor creates a repayment plan to pay back debt over a period of time while keeping assets. Therefore, in most cases, one would lose more assets in a straight bankruptcy and keep more in a wage-earner plan.

You Generally Lose All Your Assets in Straight Bankruptcy and Keep