In the vast majority of cases, you are able to keep all of your unsecured personal property, unless you have something that is unusually valuable (like an original Rembrandt hidden in the attic). You can keep this property because the Bankruptcy Code allows you to “exempt” (up to a limit) the types of things most people own, such as household goods, clothes, jewelry, vehicles, retirement plans, etc.

For example, an individual can exempt up to $13,400 in household goods, such as furniture, appliances, TV’s, computers, stereos, etc. (That amount doubles to $26,800 for married couples.) The value of your personal property is determined by how much you could reasonably get if you sold the property. Few people would be able to sell their used household goods for anywhere close to these exemption amounts. In addition, exemptions can often be stacked to increase the amount of exempted property. For that reason, most people do not lose any of their personal property in Chapter 7.

Quick Note: In Pennsylvania, you have the option of taking either Pennsylvania State or federal exemptions. However, in most instances, the federal exemptions allow you to keep much more.

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