Declaring Bankruptcy: Will You Lose Everything?

When considering bankruptcy, it’s important to understand types of bankruptcy, types of assets, and exemptions.

If you file for bankruptcy, you won't be able to keep all your assets, but some major ones will be protected. Vitalii Vodolazskyi/Shutterstock

The number of individuals filing for bankruptcy increased 16.8 percent in 2023. And many of those who filed for bankruptcy may have feared that they would lose everything.

But do you really lose everything when filing for bankruptcy? There are some limitations as to what a creditor can take. You may not keep all your assets, but some major ones are protected.

Chapter 13 Versus Chapter 7

If you’re declaring bankruptcy, it’s important to know the differences between Chapter 13 and Chapter 7. The differences will affect both your long-term finances and assets.