Bankruptcy is designed to aid the honest but unfortunate debtor. It is not intended to take all of your belongings and leave you homeless and penniless. Bankruptcy involves exemptions, which apply to a reasonable amount of personal property that remains outside of the bankruptcy and in your possession. Each state has its own exemptions, and some states allow debtors to choose federal exemptions instead. Exemptions generally allow you to retain certain amounts of equity in a home and vehicles, as well as cash, money in bank accounts, household belongings, jewelry, retirement accounts, life insurance, and other personal property. By applying exemptions correctly, you should be able to retain enough of your personal belongings to allow you get a fresh start.