If you file for Chapter 13, these debts will have to be paid in full during your plan. In addition, the following debts may be declared nondischargeable by a bankruptcy judge in Chapter 7 if the creditor challenges your request to discharge them. These debts may be discharged in Chapter 13. You lose no property in Chapter 13. In Chapter 7, you select property you are eligible to keep from either a list of state exemptions or exemptions provided in the federal Bankruptcy Code.
Most debtors use the exemptions provided by their state.
All public benefits, such as welfare, Social Security and unemployment insurance, are fully protected. Tools used on your job. You'll probably be able to keep up to a few thousand dollars worth of the tools used in your trade or profession. Other states such as Texas allow debtors to protect all or most of the equity in their home. One of the biggest worries you may face in considering filing for bankruptcy is the possible loss of your home.