If you do not have any excess income after paying your monthly minimum expense, then a Chapter 7 might be your only option. Yes, you get to keep your exempt property. You will have to agree to continue paying on the loan, or else the lender will be able to take the property back from you. It is common for a person in bankruptcy to keep paying on their car and house and then keep these items. However, all reaffirmation agreements are subject to Court approval.
Most credit cards are unsecured, meaning there is no property put up as collateral for the debt.
However, some credit cards, such as Sears and Montgomery Ward are often secured. This means you may have to give the property back that you purchased with the card if you want to discharge the debt. It will take approximately three months from the time the petition is filed until the date of final discharge for a Chapter 7. 7. A detailed petition listing all of your property, debts and other financial information is filed with the Court. A short period later there will be a meeting with the bankruptcy trustee that you must attend.