no property consumer bankruptcy
I have no property or assets to turn over to the trustee. Can I still file?
Yes. Typically most Chapter 7 cases involve individual debtors who have no assets to satisfy any portion of their creditors’ claims. These are called “no-asset” cases. In this event, the court will hold a discharge hearing, and if there are no objections to discharge filed by creditors, the court will cancel (discharge) the debts covered in the petition. You are then no longer responsible for those debts.
To qualify for a Chapter 7 bankruptcy and dismissal of your debts, your income must be below your state’s median level; if higher, your option is to repay a portion of your debts under a Chapter 13 plan.
(Reviewed 11.14.08)
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