WELCOME [ Log In · Register ]        SITE [ Search · Page Index · Recent Changes ]    RSS

No Asset Case in Bankruptcy; Exempt Assets; Discharge in Bankruptcy

A no asset bankruptcy is one in which there are no assets available to satisfy creditors' unsecured claims.  One example would be a bankruptcy in which all of the debtor's assets are exempt under the U.S. Bankruptcy Code.  Under the Bankruptcy Code, debtors filing for certain types of bankruptcy protection are permitted to keep certain property.  This exempt property will not be sold, and the proceeds of that sale will not be distributed to creditors. 

Creditors are asked not to file a Proof of Claim in a no asset case, unless of course the trustee assigned to the case finds assets that are not exempt and were not declared.  If this occurs, the Court will notify creditors if it decides it wants them to submit Proofs of Claim.

Copyright 2009 by Michael C. Dennis. All Rights Reserved. Michael is consultant  He can be reached with comments at mcdennis13@yahoo.com