The bankruptcy judge may rule some types of debts nondischargeable if the creditor objects to a discharge in the bankruptcy court. These debts include:

• debts incurred on the basis of fraud, such as lying on a credit application or writing a bad check
  
  
• debts from willful or malicious injury to another or another's property
  
  
• debts from larceny (theft), breach of trust, or embezzlement, or
  
  
• debts arising out of a marital settlement agreement or divorce decree that aren't otherwise automatically nondischargeable as support or alimony.
  
  

How Much Property Will You Have to Give Up?

Whether or not you decide to file for bankruptcy may depend on what property of yours will be taken to pay your creditors ("nonexempt" property) and what property you get to keep ("exempt" property).

Certain kinds of property are exempt in almost every state, while others are almost never exempt. The following are items you can typically keep (exempt property):

• motor vehicles, up to a certain value
  
  
• reasonably necessary clothing (no mink coats)
  
  
• reasonably needed household furnishings and goods (the second TV may have to go)
  
  
• household appliances
  
  
• jewelry, up to a certain value
  
  
• personal effects
  
  
• life insurance (cash or loan value, or the proceeds of life insurance), up to a certain value
  
  
• pensions
  
  
• part of the equity in your home
  
  
• tools of your trade or profession, up to a certain value
  
  
• a portion of unpaid but earned wages, and
  
  
• public benefits (welfare, Social Security, unemployment compensation) accumulated in a bank account.