Will I lose my house and car if I file Chapter 7 bankruptcy?

Usually not, thanks to exemptions. Chapter 7 lets you keep property covered by federal or state bankruptcy exemptions, which typically protect a certain amount of home equity (the homestead exemption), a vehicle, retirement accounts, and basic household goods. Retirement accounts like 401(k)s and IRAs are largely protected. You can generally keep a house or car with a loan if you stay current on the payments, often by reaffirming the debt. You could lose non-exempt luxury assets or a second property with significant equity. Exemption amounts vary widely by state, so the outcome for your home hinges on your state's homestead exemption and your equity. A bankruptcy attorney can tell you exactly what is protected before you file.