Understanding No-Asset Bankruptcy
When an individual considers filing for personal bankruptcy, he or she must decide if Chapter 7 or Chapter 13 is best for his or her situation. In Chapter 7 bankruptcy, a person must liquidate his or her assets in order to pay creditors. But what if a person does not have substantial assets to begin with? Fortunately, a no-asset bankruptcy is still possible with Chapter 7 bankruptcy. Debtors going through Chapter 7 will often retain control over certain necessary assets while still getting rid of debt. If you are in the Raleigh area, a dedicated lawyer form the Bradford Law Offices, PLLC, can help you understand this process and how it can help you.
Exempt vs. Non-Exempt Property in No-Asset Bankruptcy
In regular “asset” bankruptcy cases under Chapter 7 bankruptcy, people’s belongings are divided into exempt and non-exempt property. Exempt property, such as a certain amount of clothing, household goods, and professional tools cannot be liquidated to pay creditors. On the other hand, non-exempt property can be sold to take care of debts.
Thus, when a person who does not have non-exempt property decides to file for bankruptcy, it is called a no-asset bankruptcy case. However, it is important to note that although this individual does not have any assets to repay creditors, he or she will still receive the full debt forgiveness available through bankruptcy.
Talk to a No-Asset Bankruptcy Lawyer in Raleigh
If you or someone you know is struggling with the various options for bankruptcy and you have questions about filing for no-asset bankruptcy, the experienced lawyers of the Bradford Law Offices, PLLC, can help. Give us a call today at 919-758-8879 to learn more about how we can assist you throughout this process.