Chapter 7 bankruptcy is also sometimes called liquidation bankruptcy. That's because you may have to sell (or liquidate) some of your assets to repay your debts to creditors. The list of exempt property you don't have to turn over to creditors varies, with some states allowing you to choose between federal and state exemptions. In most cases, Chapter 7 bankruptcy cases are "no asset" cases. That means there's a lien (such as a loan) against the property or all of your property is exempt.