What would you like to do?
What is no asset bankruptcy?
No asset bankruptcy is a term used to refer to Chapter 7 bankruptcy. Usually in Chapter 7 cases, a person's entire debt is wiped clean. In many cases, the bankruptcy court will assign a trustee to take certain belongings (assets) and sell them to pay off a debt. In quite a number of cases, the courts have found that the person has no assets to sell (they won't take away items that will make your life unlivable without). If this happens, your case is considered a "no asset" case.
+ 3 others found this useful
Was this answer useful?
Thanks for the feedback!
Answer When you complete your bankruptcy schedules you are swearing, under oath, that everything in them is true and accurate. The Trustee does have the ability …to hire an appraiser to value your assets. If the Trustee suspsects you're hiding assets, they can hire investigators to verify, but most of the time this does not happen. Hiding assets is bankruptcy fraud and could land you in jail and fined if you're caught at it.
yes this is usually what is done, as this is how the business may pay off some debts.
Virtually never. First, there are rarely personal items of te type at a house that aren't exempt (all your household type goods are exempt)...and if you happen to have a …Van Gough on the wall...co-operation with the trustee over an item like this is the better route.
Some debts cannot be cleared (child support, judgments, certain student loans, most notably. Basically all loans other than government ones are private and nothing special). A… list of debts AND assets that can't be cleared or taken is below. I'm not sure what the above intended, but it is incorrect to think there is any quality or quantity of debt required to file. Many people go BK on just credit card debt (probably the most common thing in fact), with no secured or priority debt. (In fact, generally a credit card co that gets a judgment and can secure it to a property of yours...probably won't have the BK clear it, as judgments aren't covered in BK). But you should also note that BK doesn't just eliminate debts...or debts of your choice. You go bankrupt, not the debt. It involves all of your assets and all of your debts. In basic form...all of your assets (again minus some few exempt things), are surrendered and liquidated with the money used to pay as much of the debts as possible (all debts are given a priority - first as secured like a car loan or unsecured which means against everything generally)...some are paid more, some less)...any resulting deficiency may be eliminated (wiped clean). You do not get to get rid of the debt AND keep what you may have gotten with it, (or invested/paid for elsewhere, instead of paying the amount owed). Exemptions under Federal law, which may change a little in State applications by the Federal BK Court you file in: Personal and Real Property: (1) Household: Up to $425.00 per item not to exceed a total of $8,625.00 (includes animals, appliances, books, crops, furnishings, household goods, clothing, musical instruments) (2) Jewelry: Up to $1,075.00 (3) Vehicles: Up to $2,575.00 (4) Work tools (implements, books and tools of trade): Up to $1,625.00 (5) Health aides (wheelchair, etc.): Unlimited (6) Burial plot: Up to $16,500.00 (in lieu of real estate exemption) (7) Real estate (house, co-op or mobile home): Up to $16,150.00 (8) Any property: Up to $8,075.00 of unused portion of real estate exemption Wages, Pensions, Recoveries and Benefits: (1) Wages: None (2) Wrongful death funds: Amount needed for support (3) Personal injury funds: Up to $16,500.00 (excluding that for pain and suffering or pecuniary loss) (4) Lost earnings payments: Unlimited amount (5) Retirement benefits: Amount needed for support (6) Alimony / child support: Amount needed for support (7) Unemployment compensation: Unlimited amount (8) Veterans benefits: Unlimited amount (9) Social security benefits: Unlimited amount (10) Public assistance: Unlimited amount (11) Crime victims compensation: Unlimited amount Insurance: (1) Disability: Unlimited amount (2) Unemployment benefits: Unlimited amount (3) Unmatured life insurance: Unlimited amount (4) Life insurance policy loan value, dividends or interest: Up to $8,625 (5) Life insurance proceeds: Amount needed for support If you're doing a Chapter 7 bankruptcy, you can't discharge:Taxes and tax liensStudent loansDomestic support obligations (child support and alimony)Luxury goods over $500 purchased within 90 days of filingFines or penalties of government agenciesCash advances of more than $750 taken within 70 days of filingFraudulent debtsWillful or malicious injury to anotherDeath or personal injury from the operation of a motor vehicle, aircraft or vessel while intoxicatedCondominium or cooperative association feesDebts not listed on your schedules Debts arising from fraud or maliciousness are not automatically excepted from discharge. The creditor must make a request to the court to except these types of obligations; otherwise they will be discharged
Answer If you have no assets, then it's a great way to get rid of debt. Chapter 7 bankruptcy is FAST, and normally pretty cheap compared to what you get (all your debt …gone). If you have assets, you may be forced into a Chapter 13 and have to pay back some debt. Answer I like Nate's answer. But, if by your question you mean "I don't have any assets for creditors to come after, so why bother filing bankruptcy?" then I would say that there still might be reasons one would want to file. For example, even if you don't have a home or car that is subject to a judgment lien, creditors can still garnish wages (but not Social Security). Or, creditors can simply hassle you constantly on the phone. Another thing creditors can do, in Indiana at least, is sue you and keep dragging you back to court every month or so to explain why the judgment isn't paid. Then, the first time you miss a hearing, the creditor asks the Court to put a Writ of Attachment on you, which is basically a warrant for your arrest for contempt of court since you missed a hearing at which your presence was ordered by the Court. So, just because you don't have any property the creditors can take away doesn't mean that you don't need to file bankruptcy. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person. ANSWER You should consider petitioning for your own bankruptcy if you have debts that you cannot afford to repay. A large percentage of individuals who petition for their own bankruptcy have no assets and use bankruptcy as a solution to their debt problems. However, bankruptcy is widely regarded as a last resort and should be considered only after receiving expert advice.
Answer If creditors believe the person is trying to remove funds from accounts to keep them from bankruptcy proceedings; creditors can petition the court to… freeze all accounts/assets. A bank cannot arbitraily seize account funds unless the depositer has a loan with the bank which includes a set off provision. Even then the bankruptcy trustee can request the funds be returned and included as assets in the bankruptcy.
Its easier to consider what they can't/don't: 401K or IRA account. Household Goods. Work Tools. Reasonable (read cheap) Car., Medical type devices, a few other things.
That is not how a Chapter 13 is usually described, since assets are irrelevant except to compare what a Chapter 7 would provide to unsecured creditors. But it is possible that… the monthly income or the means test shows the debtor can do a plan, even though the debtor has no non-exempt assets.
It depends on what assets you are talking about. Should you declare things like your house and car in your bankruptcy the bank or financier would have a claim to them fi…rst before anyone else. EXAMPLE: I declare my 2008 Chevy Trailblazer in bankruptcy - GMAC holds the loan and title to the car so they would come and repossess it. Declare your home in bankruptcy and whatever bank has your mortgage will, eventually, foreclose and kick you out and take possession of the house and property. If you're talking about your personal assets ... it really depends if they're worth anything. When you file for bankruptcy the trustee handling your case will determine what assets you have and if they are worth liquidating to get money to give to your creditors. If you're worried about the computer you bought last year they won't want it ... don't forget ... you have to take into consideration that whatever they MIGHT take from you is used and therefore has depreciated in value. On the other hand if you tell them you have a $10,000 home theater set-up or a 2ct. diamond ring, stocks, bonds, gold ... things of that nature may have to be liquidated but I'd say probably not. I'd STRONGLY recommend hiring an attorney to handle your bankruptcy case ... there is too much paperwork that needs to be done ... it's worth the cost, plus they can advise you on different situations you may encounter! Hope this info helps!!!
Bankruptcies will stay on your credit report for 7 to 10 years. The only way to get it removed is to have the courthouse where it was filed remove it or the credit bureaus rem…ove it themselves. You can dispute it yourself to the credit bureaus or hire a credit repair service to do it for you.
How can you file bankruptcy if all your assets and business assets are in a trust for your children?
That's a really complicated situation, and you will definitely want to see an attorney in your area about it since there are lots of little factors that can completely change… the outcome. Generally speaking, one would probably have a tough time filing bankruptcy in that situation if one put the items in the trust within the past 12 months since the Bankruptcy Court might see that as a gift, and the Court can go back and void any gifts to family members or friends (called "insiders" in bankruptcy lingo) that occured within the past 12 months prior to filing the bankruptcy. If the trust was funded more than 12 months ago, one normally doesn't have to report the funding on their bankruptcy petition, but that alone might not end the issue. Some states have fraudulent transfer statutes that prevent one from changing the ownership of assets to protect them from creditors that go back several years, so depending on what state one lives in, one may have problems. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
Answer Yes, all assets must be disclosed. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my… understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!
Can you get in trouble if you listed your 401k as an asset in bankruptcy and cashed out to pay remaining debt after the fact?
Answer Generally you cannot get in trouble for cashing in a 401(k) that was listed as an asset in your bankruptcy case to pay off non-discharged debts after the …case is over. If the 401(k) was listed as an asset, the court most likely ignored it since 401(k)'s are virtually always exempt (safe) in a bankruptcy proceeding, and once the case is over you are free to liquidate (i.e. cash in) your exempt assets and do whatever you want with the money, such as pay off non-discharged debts. If for some reason the court found the 401(k) to be an unexempt asset, such as if it was completely funded right before the bankruptcy was filed and was really just an attempt to protect cash, then if it is liquidated by the debtor without court approval this could be a problem. But, assuming no fraudulent activity on the part of the debtor, there should not be any problems. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!
if your legally married when you file bankruptcy, you must include every single asset including the spouses. depends on what type of bk you file. you may be able to keep… your assets.
Your real concern is the statute of limitations on committing criminal fraud...which if you swore to the court you revealed all the assets, and you didn't, is what you'l…l be prosecuted for.
Only if then can show that you committed fraud, by piercing the corporate veil (i.e. using the business as your personal property), or if you gave a personal guarantee for bus…iness loans/debts.