When a debt is discharged in bankruptcy, the slate is wiped clean as to personal liability of the bankruptcy filer. However, the debt could be enforced against any co-maker and liens may be enforced.. The filer no longer owes the debt, and the creditor must cease trying to collect it.
Some assets could be liquidated, which are called non-exempt assets. Most individuals keep their assets that are exempt. Essential assets, like a house, furnishings, vehicle or retirement funds, are generally retained as exempt assets.
Keep in mind that not all debts are dischargeable. Certain kinds of debt, like student loans, government or tax debt, alimony, child support, or other debts a person was required to pay in a divorce decree, are typically not discharged in bankruptcy. There are a few exceptions, and your attorney may suggest one if they think its appropriate for your situation, but for most people, these are not viable options. If you have non-dischargeable debt, you should consider possibilities such as negotiating with creditors, reorganizing your debt, or a Chapter 13 bankruptcy in which your debts are consolidated to give you a lower monthly payment.