The value of these exempt properties differs depending on what jurisdiction you file for Chapter 7 Bankruptcy in.

A trustee will be appointed who will gather the debtors assets ready for sale. The proceeds will then be distributed to creditors according to priority. Even after declaring Chapter 7 Bankruptcy there are some debts that will still be require to be paid off. These are called non-dischargeable debts and some examples are

Secured debts are those where the creditor has an interest in the property of the person filing for bankruptcy. It may be that the loan was used to purchase the property. Secured debts take priority over non-secured debts. If the sale of the property is insufficient to repay the secured debt then the remained of the debt becomes classed as a non-secured debt.

Non-secured debts are the last debts to be cleared off in bankruptcy proceedings. They may even end up completely discharged if there are not enough assets. This is what happens in many Chapter 7 Bankruptcy cases. An example of a non-secured debt is a credit card debt.

Lorna Mclaren has an information and resources website at http://www.123-debt-consolidation-loans.com where you can find out more about the different types of Bankruptcy.