Although through a Chapter 7 bankruptcy many possessions cannot be lost, it can have significant consequences, like loss of property.  A federal court trustee will supervise the sale of any assets that aren't exempt, and the sale money goes to your creditors.  Chapter 13 bankruptcy allows you to keep your property, but you'll need to partially or completely repay your debt.  A three- to five-year repayment plan will usually need to be negotiated.  Because much of the debt is repaid over time, Chapter 13 bankruptcy is often a more favorable option.