With your property

What happens to my property in bankruptcy?

First, we take all of your property and divide it into (a) exempt property and (b) non-exempt property. Exempt property is set aside for you to keep (WITH any debt secured by the property); non-exempt property (if any) goes to the Trustee, who sells it and distributes the proceeds to your unsecured creditors. (In many cases, the trustee sells the non-exempt property back to the debtor, but the proceeds still go to the creditors.) When that’s done, you get your discharge, wiping out any remaining debt to the general unsecured creditors, and you get your Fresh Start.