In many Chapter 7 bankruptcy proceedings, available assets are liquidated or sold, and the proceeds are used to provide some repayment to creditors. But the court will not deprive someone filing for bankruptcy of assets necessary to their life. Usually, you can keep your car and home if they are paid for or if you reaffirm your commitment to making payments. You may also be able to keep assets necessary to do your job for example, expensive sound equipment you use in your DJ business. Retirement accounts are also considered exempt or off-limits to creditors. Furniture, clothing, or other personal items are usually exempt unless they are extremely expensive.