Fortunately, bankruptcy does not mean that you are going to lose everything you have, even though a Chapter 7 is referred to as a liquidation.
Over the course of this podcast, I discuss what an exemption is, and how they are applied. As an attorney in California, this podcast is a little California heavy. Exemptions can be complicated, since each state has the opportunity to adopt its own standards, and as a result, there is no one size fits all discussion. I do try and parse out what an exemption is however, and how they apply to bankruptcy. That in itself may be helpful and interesting to anyone outside of California.