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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.
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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.
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.
This means you walk away with no assets. Meaning, if you have 2 cars and $100,000 in debt, after the bankruptcy, you give the cars to the court and they sell them to (pa…rtially) repay your debtors. In other words, you walk away with no assets and no debt. The court will do their best to find all of your assets, cars, house, etc. Anything they can find to sell.
The debtors is th one who files BK. Basically, it's pretty simple: all of their assets are used to pay off all of their debts. If they don't have enough assets… to pay all the debts, the excess debt may be dismissed by the court. Some debts (which are whata debtors owes creditors), may be paid in full and some only in part. If the debt is secured by a specific item, say a car or house, the money from the sale of that item will go firt to that specific creditor. Some assets (like certain retirement accounts, workers tools, kitchen set, very personal things) as well as certain debts (like student loans, court judgements, child support) are not included in the BK process.
yes this is usually what is done, as this is how the business may pay off some debts.
No, you don't need assets to file for bankruptcy, except for money for the attorney's fees. For a chapter 7 case, the average fee will be $1,500.00. For a chapter 13 case, the… average fee is usually about $3,000.00, but it's paid out in monthly installments over a 3-5 year period.
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.
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!!!
At the moment the court receives the petition, and gives it a docket number, all the debtor(s)' assets are "frozen" as they become property of the bankruptcy estate, administe…red by the trustee. In a Chapter 7, if the trustee files a finding of no assets, which mean the trustee accepts all exemptions claimed by the debtor(s) and there are no assets to be sold to satisfy the creditors, the property is available once more to the debtor. In a chapter 13, the freeze continues until the plan is approved except for regularly occurring payments for utilities, food, etc. In both cases, if the case is dismissed, the property is also unfrozen.
No, all your assets...and all your debts and obligations..are under the controll of the Court..as you asked!
Sold is sold...so if the new owner wants to sell, sure..ut there is no right to.
Don't do it! A BK is ALWAYS a last resort. There are usually many other options that won't haunt you the rest of your life. Go to www.daveramsey.com. It's helped me.
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.
You can still file BK if you dont have assets. Most chapter 7 BKs filed are considered "non-asset" cases
Then you'll have filed for bankruptcy with no assets. Helpful hint: if, when phrasing your question, you notice that it starts "What if", it's almost always an indication tha…t you should put more thought into asking precisely what it is you want to know instead of forcing us to guess what you mean.