No Asset Case
What does No Asset Case mean?
A no-asset case is a bankruptcy case where the client has no property to liquidate to meet the debt obligations of their creditors. A no-asset case can also include debtors who have property but the property is considered exempt under federal or state bankruptcy laws. No-asset cases are contrasted with asset cases where the bankruptcy filer has assets that are not considered exempt and which can be liquidated if the debtor files Chapter 7 bankruptcy. If the assets are liquidated the proceeds from the sale are used to repay their debts to their creditors.
Although most debtors should consult with a lawyer before filing bankruptcy, if the debtor is filing a simple, no-asset Chapter 7 bankruptcy they may be able to file bankruptcy on their own without legal help. Consider, however, if you do decide you would like legal help a lawyer may not charge too much money to help you with a simple, no-asset case.
To file a no-asset case the first step is to review information on the U.S. Courts webpage. All bankruptcy schedules can be downloaded from this site. Consider, however, the court will not care if you have legal representation or not, but they will expect for you to provide accurate and honest information. Providing inaccurate information to the court can be considered fraud and is a criminal offense.