Basic assets are exempt in bankruptcy. Bankruptcy isn't designed to punish or humiliate an individual. Bankruptcy is designed to give a person a second chance in life; however, at the same time, it would be unfair for you to file for Chapter 7 bankruptcy and be discharged from unsecure debt, if at the same time, you had a substantial amount of equity in your home. So there is an equity analysis that is used to determine what types of assets are protected in a bankruptcy. It always a good idea to speak with a bankruptcy attorney to determine whether or not you are at risk.