Can the bankruptcy court take all of my property?

In a Chapter 7 bankruptcy, certain types of property are exempt from being liquidated in most states. This usually includes, motor vehicles, necessary clothing, necessary household furnishings and goods (a second large HDTV may have to go), household appliances, jewelry up to a certain value, personal effects, 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, and public benefits (welfare, Social Security, unemployment compensation) accumulated in a bank account.

Items that are nonexempt (property that may be liquidated) include: a second or vacation home, a second car or truck, expensive musical instruments (unless you’re a professional musician), stamp, coin, and other collections, family heirlooms, high-valued jewelry, cash, bank accounts, stocks, bonds and other investments.