How should I organize my closet?

I have tons of bags with miscellaneous belongings in them. & they're those cheap dollar plaid plastic bags with the zipper. Most of the bags have holes in them or broken zippers, & the stuff is basically falling out, which basically makes the closet look kinda junky. So do you think I should take everything out the bags, group them together, & organize them neatly & throw the bags away or just leave everything in the bags?