Does a person lose all of his or her property by filing under chapter 7?
Usually not. Certain property is exempt by law and cannot be taken by creditors, unless it is encumbered by a valid security interest. A debtor is usually allowed to retain his or her exempt property in a Chapter 7 case. A debtor may also be allowed to retain certain encumbered (or secured) exempt property (see “What secured property may a debtor retain or redeem in a Chapter 7 case?” below.
