Chapter 7 bankruptcy erases all or most of your debts, without a repayment plan, and in general, allows you to keep most or all of your assets and other belongings.
When you file for bankruptcy it creates a “bankruptcy estate,” which is your interest in your property and assets at the time you file. The Bankruptcy Trustee assigned to administer your case is given control of the bankruptcy estate. Though, this is not as frightening as it may sound.
While the Bankruptcy Trustee has the power to seize and sell assets, then use the proceeds to pay a pro-rata share to certain of your creditors, so long as all of your assets, property, and other belongings are listed, properly valued, and exempt in the bankruptcy petition, there is no risk of losing assets.
“No Asset” Chapter 7 Bankruptcy
A “no asset” Chapter 7 bankruptcy means that the debtor does not have assets that can legally be seized, so the Trustee has nothing he or she can seize and sell. It does not mean that the debtor has no assets, it means that a debtor gets to keep all of their assets through the bankruptcy process.
When you file for bankruptcy you must list all of your assets, property, and belongings and then assign a fair market value to the item. The U.S. Bankruptcy Code, as well as the state of Georgia, carves out exemptions that allow you to protect property and assets valued up to a certain dollar amount. Exemptions are available for your home, car, personal belongings, retirement accounts, and other assets. If an asset is “exempt,” it cannot be taken by your creditors or by the Bankruptcy Trustee to pay back your creditors.
When all of your property and assets are fully exempt, then you have a “no asset” Chapter 7 case. The vast majority of Chapter 7 cases are “no-asset” cases.
Will I Know if I Have a “No Asset” Chapter 7?
Yes, prior to filing you will know if you have a “no asset” case, or if you have assets that may be subject to seizure and sale by the Bankruptcy Trustee. Again, as long as you disclose all of your assets prior to filing and properly value them, you will know if you have any assets at risk of being liquidated.
When you work with our firm we will help you list your assets and assign the appropriate fair market value to each item.
Free Consultation with a Bankruptcy Attorney
Here at the Law Office of Barbara B. Braziel, we help people get out of debt. We are the premier bankruptcy law firm in Savannah, GA and we practice exclusively in bankruptcy law. Our experienced attorneys are committed to ensuring you understand the protections and benefits of bankruptcy and how filing with affect you and your family. We take the time to explain the bankruptcy process to our clients. We invite you to get to know us here and read about the clients we’ve helped here.
Call us today at (912) 351-9000 or contact us to schedule a free consultation.
We proudly serve the people of Savannah, GA and the surrounding areas, including Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.