Can I Still File for Bankruptcy If I Don’t Own Anything?

There are many reasons why someone may file bankruptcy, as well as different types of bankruptcy that can be pursued. Regardless of the reason, however, one circumstance that comes up for some is filing for bankruptcy with no assets. Is such a thing even possible?

The short answer is that, yes, even if you have no assets, you can file for bankruptcy. In fact, for the most part, people who file for Chapter 7 bankruptcy are filing with no assets to account for.

When you are filing bankruptcy with no assets, you file for no asset bankruptcy. In this case, the bankruptcy trustee will inform your creditors that there will be no assets as part of the bankruptcy filing to collect. Once the debt has been discharged, you can begin to move on with your life.

When you file for Chapter 7 bankruptcy with no assets, it is possible that someone may verify whether your lack of assets is indeed the case. This is likely going to be due to a creditor becoming suspicious that you may have nonexempt debts that you are concealing. However, such Chapter 7 bankruptcy filings typically do not go down such a confrontational route.

Chapter 7 and Chapter 13 Bankruptcy

The key difference between the two bankruptcy types is who exactly they’re for. Chapter 13 is an ideal bankruptcy route if you have the money to eventually pay off your debts. In contrast, Chapter 7 is meant for you if you simply cannot keep up with your debt payments. In Chapter 7, you lose all nonexempt assets as part of clearing your debts, while Chapter 13 sets up a payment plan.

Now, if you have no assets to speak of, it’s not likely that you will be able to pay off debts given enough time and effort. Thus, Chapter 7 is probably going to be the ideal route. If you aren’t sure whether you should go with one or the other, consult a Brighton Beach bankruptcy lawyer.

What Are Considered Assets?

When you file for bankruptcy, knowing what is and is not an asset is important. Assets can refer to a number of things, most commonly items or money. However, not all assets are necessarily physical; for example, what you owe or what you are owed is also a part of your assets.

If you’re having trouble figuring out what assets would be exempt, the good news is that it’s not a particularly difficult thing to do. Basically, any items required to earn a living, such as a house, car, etc., cannot be touched as part of a bankruptcy case.

What if I Only Own Exempt Assets?

This is also an important question, as some people do have some assets, but after examination, virtually everything they have is an essential asset. Even if you do have these essential assets available, there are no exceptions in New York law that would allow your creditors to seek those essential finances.

Can I Own Assets After Filing for Bankruptcy?

If you file for Chapter 7 bankruptcy, you don’t have to worry about whether assets obtained after going bankrupt will be affected in any way. Once you’ve divested yourself of your assets, you’re on the right path to building up your assets again. However, if you filed Chapter 13, that would be a more complicated process.

If you need to figure out how to manage your assets before filing for bankruptcy or need assistance getting it filed, be sure to contact Ursulova Law Offices to speak to a bankruptcy lawyer Brighton Beach.

A quality lawyer can help you understand the complicated legal red tape involved in this stressful process.