There are a lot of myths floating around out there about bankruptcy. One that we hear all the time is that in a Chapter 7 bankruptcy, the trustee or court will take everything you own and distribute it to creditors. In the vast majority of California Chapter 7 cases, the debtor is able to keep all of their property through the state exemptions. For instance, retirement accounts are generally protected, as are household goods and furniture. Determining which exemptions apply and how to use them can be tricky, so consult with a bankruptcy attorney before you determine that you have too many assets to file a Chapter 7 petition.