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Can I File for Bankruptcy if I have No Assets?

Can I File for Bankruptcy if I have No Assets?

If you are struggling to make ends meet, living paycheck to paycheck, filing for bankruptcy might be a helpful option for you. As you research into the subject, you realize, you might not have any assets to sell to your creditors. Can you still file for bankruptcy?

The answer is yes. In fact, most of the bankruptcies filed in America are Chapter 7, no-asset cases. Chapter 7 bankruptcy cases that are filed without assets only mean the debtor does not own in nonexempt assets that could be sold to pay off creditors.

When you file for bankruptcy, a trustee is placed in charge of your property. This person is appointed by the court to identify whether or not you have any assets that could be sold to your creditors. The state allows a certain amount of your assets to be placed under exemption. The idea behind exemption assets is that citizens should be given a fresh start from their debt, but also be able to sustain themselves. For example, you still need your clothing and your car so you can continue to work and pay your bills.

Are all my debts discharged in a Chapter 7 Bankruptcy?

Chapter 7 only clears you of unsecured debts. For example, a secured debt could be a student loan or mortgage. This means, even after you have filed for bankruptcy your mortgage and student loan creditors can still pursue you for the amount you owe. Your creditors can still repossess or foreclose your home.

Let Our Atlanta Bankruptcy Lawyer Help

If you are in financial distress and are in need of guidance, our Atlanta chapter 7 attorney is here to help. In some cases, filing for Chapter 7 bankruptcy is the last resort. Our skilled legal team can help negotiate with your creditors to lower your debt and help you resolve your financial crisis. When your future depends on your financial stability, choose Khoshnood Law Firm, P.C. to help you protect it.

Get the information you need, schedule a free consultation.