A no-asset bankruptcy does not mean that you have zero assets and are left with nothing after receiving a discharge in Chapter 7 bankruptcy. Rather, a no-asset case simply means that none of your property will be liquidated so that the property will be distributed to creditors. This happens when all of your property is covered by the California bankruptcy exemptions, leaving nothing left to be distributed to your creditors.
The Chapter 7 Bankruptcy Process
In a Chapter 7 case, all of your property is placed into the bankruptcy estate. All the non-exempt property will be sold, and the proceeds will be given to your creditors. In return, you will receive a complete discharge of all unsecured debts, such as credit card debt or medical bills.
The California bankruptcy exemptions allow you to exempt a certain amount of property in various categories from liquidation. For example, your retirement accounts are exempt, as is up to $175,000 of equity in your home, depending on your age and other factors. You will be able to keep all of your exempt property, while still being able to take advantage of the discharge in a Chapter 7 bankruptcy. For secured creditor forced repayment please refer to what is chapter 13 bankruptcy or known as a process of a cramdown.
Schedule An Appointment To Talk To A Chapter 7 Bankruptcy Attorney
FILING FOR CHAPTER 7 BANKRUPTCY IS YOUR LEGAL SOLUTION TO A FRESH START
The United States Of America’s Federal Bankruptcy Act was created to protect you when you cannot afford to meet your financial obligations with your creditors. The following are examples of what filing for Bankruptcy protection can do for you.
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FILING FOR BANKRUPTCY IS YOUR LEGAL SOLUTION TO A FRESH START
Do You Have a No-Asset Case?
To determine if you have a no-asset case, you should talk to a California bankruptcy attorney. You will need to know the value of all of your assets so that you can see how much of your property may be covered by the bankruptcy exemptions. You may also need to provide information about your debts and your income over the past 12 months to make sure that you are eligible for a Chapter 7 filing.
If you do have a no-asset bankruptcy case, you will be able to get a fresh financial start without having to give up any property. Your unsecured debts will be discharged, and you will not have to part with any of your assets. A must read if you are thinking of filing bankruptcy in 2018.
However, before you file a Chapter 7 case, you should make sure that you are eligible to file, and that you have exhausted your other options for managing your debt. A bankruptcy attorney can help you plan your no-asset bankruptcy case.