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If your debt has become unmanageable, you can declare Chapter 7 bankruptcy. In Chapter 7 bankruptcy, some of your assets may be liquidated, but you will be able to keep most of your exempt assets.

You and an excellent Las Vegas bankruptcy lawyer will devise a moral plan to protect your assets.

The type of bankruptcy protection you seek significantly impacts your ability to keep your stocks. When filing for bankruptcy, consumers have two options: Chapter 7, in which their assets are liquidated to pay off all or a portion of their debts, and Chapter 13, in which they can repay their debts over time with no interest.

Understanding Chapter 7, Bankruptcy

If you file for Chapter 7 bankruptcy, the Trustee will appraise your belongings, sell them, and divide the proceeds among your unsecured creditors. To pay off your debt, you may need to sell your stocks and other valuables, such as your home and car. 

Decisions about whether or not to employ this strategy and, if so, which assets are liquidated to pay off the debt are typically based on the size of the debt owed. There are ways to pay off debts that don’t involve liquidating assets. Given the circumstances, you may be able to keep some of your belongings.

Sometimes people will refer to Chapter 7 bankruptcy as a “liquidation bankruptcy.” All of your dischargeable unsecured debts will be wiped out if you file for Chapter 7 bankruptcy protection. 

The need to sell off possessions to pay off debtors is a significant drawback of Chapter 7 bankruptcy. During bankruptcy, you can keep a certain amount of money and equity in your vehicles and homes, but the court will decide what to do with the rest.

If the value of your home exceeds the equity amount protected by state law, the bankruptcy court may order its sale. If you have $90,000 in equity but only $75,000 is exempt in your state, the court will sell your home, give you $75,000, and use the remaining $15,000 to settle your debts.


Your bankruptcy estate includes all your assets, including any money you have on hand or in savings or checking accounts. Keeping all of your cash on hand and in the bank is possible with careful bankruptcy planning, thanks to the wide variety of exemptions that protect such funds. 

For instance, the Debtor could keep six months’ worth of a Florida single parent’s salary. Your available cash is also subject to a wide variety of other exceptions.

Investments, Retirement, and Brokerage Accounts

In a Chapter 7 bankruptcy, securities and cash held in brokerage accounts are exempt from the Trustee’s claims, but you may be required to liquidate the accounts.

You will have no access to your retirement funds. There are a few exceptions to this rule, the most notable of which is making sizeable contributions to retirement savings just before submitting a bankruptcy petition.

Your Home

Due to the apparent necessity of a safe place to sleep, your primary residence is an exempt asset. To what extent a vehicle with significant equity or a second home is safeguarded in Chapter 7 bankruptcy is a matter of interpretation. 

Chapter 13 bankruptcy, which lets the Debtor keep everything, might be your best option. Consult a seasoned bankruptcy attorney for assistance in assessing your situation and getting practical guidance.

Your Collections

Imagine you have a priceless collection of items, such as coins, jewelry, stamps, or even video games. If so, you can declare bankruptcy under Chapter 7 and include the sale of your collection.


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