In a chapter 7 bankruptcy proceeding, the bankruptcy trustee will evaluate all of your assets to determine which ones can be liquidated, or sold off, to repay all or some of your debts. Certain assets are “exempt” from bankruptcy liquidation, such as your primary residence and any retirement accounts. Other assets, such as cars or personal property will be sold to get money to repay your creditors. You can elect to reaffirm certain debts in order to keep the property. For example, if you decide to reaffirm auto loan debt, you promise to keep on paying your monthly car payments to keep your car. A bankruptcy lawyer will be able to “cram down” this debt, and reduce your principle to the fair market value of your car which will significantly reduce your car payments.