In a Chapter 7 bankruptcy, some of a debtor's assets and/or property are exempt from bankruptcy proceedings. This means that the debtor is allowed to keep these items of property, instead of having them liquidated and applied to outstanding debts. There are both federal and state laws that govern which items of property are exempt and non-exempt. Therefore, whether an item of property is exempt from liquidation during bankruptcy can vary according to the state in which a debtor resides. Some items of property are generally exempt in all states, however, such as retirement accounts. These types of savings, including 401(k) plans and pensions, are usually exempt. It is important for debtors to be aware of these exemptions, such as the fact that a 401(k) is protected by bankruptcy, so that the debtors do not spend their retirement funds needlessly prior to filing bankruptcy.