If so, you cannot get Chapter 7. You have to apply for Chapter 13, which is a court-supervised repayment plan. First, it takes your average monthly income over the past six months. That budget has nothing to do with your actual living expenses. Any money exceeding these exemptions has to go toward debt.
Unsecured creditors get what's left.
You'll be required to take a budget-counseling course. Home equity remains a fighting issue. The Senate thinks that's fine and President Bush agrees. Wealthy bankrupts might have to cover some of their debts under the new bankruptcy-income test. But they'd still have their big home equity left.