Many people who are unfamiliar with bankruptcy assume that they will automatically lose all of their property to pay back their debts, such as their home, their car, or other valuables. But what happens if you don't have any assets? Is bankruptcy still an option?If you are struggling with debt but don't own any assets, such as valuables, cash, or non-exempt property, that can be sold to pay back your creditors, you can still file for bankruptcy. A Chapter 7 bankruptcy, or "liquidation bankruptcy," allows an individual without any assets to have their unsecured debts discharged. Unsecured debts include things like credit card bills, medical bills, and payday loans. The debtor is allowed to keep assets that are considered "exempt" under state bankruptcy law. If all of his or her assets are considered exempt and they would not lose any property, theirs would be a straightforward no asset case.What are the Filing Procedures for No Asset Cases?The filing procedures for a no asset Chapter 7 bankruptcy case are:File the petition. The debtor must take the means test and complete a credit counseling course.Automatic stay goes into effect. The automatic stay prevents most creditors from making collection actions while your case is pending.Attend creditor's meeting. At the creditor's meeting, the bankruptcy trustee will ask a series of questions about property and debts. Creditors usually do not attend.Discharge of debts. Most debts are eliminated at the end of the case, with some exceptions.Do You Have a No Asset Case? Contact Us TodayWondering if you have a no asset Chapter 7 case? Contact Wadhwani & Shanfeld today to discuss your case with a Sherman Oaks bankruptcy attorney. Call our firm today to request your free over-the-phone consultation.
