Wondering if you can file Chapter 7 Bankruptcy without owning any valuable property is a common question for bankruptcy attorneys in Auburn California. The short answer is yes, you can file what is called Chapter 7 no-asset bankruptcy if you don’t own property that will be liquidated by the bankruptcy trustee.
Chapter 7 No-Asset Bankruptcy
In a Chapter 7 bankruptcy case, you are allowed exemptions on your property which protects it from being sold by the bankruptcy trustee. If you don’t own any valuable assets, the trustee will file a no-asset report in your case and your non-priority debts will be discharged. The Chapter 7 no-asset bankruptcy is actually the most common type of bankruptcy.
Chapter 7 Bankruptcy with Assets
Even if you own a home, automobile, investments, or other forms of property, you may still be able to keep them when you file for Chapter 7 bankruptcy. The amount of property you are allowed to exempt in a bankruptcy case is based on state law. In a bankruptcy in California, you must use state exemptions versus federal exemptions, but you do have the choice between two separate sets of exemptions. By meeting with a bankruptcy lawyer in Fairfield California, you’ll be able to find out more about which set or “system” will allow you to keep the most amount of property while legally wiping out your eligible debt using bankruptcy.
Categorized in: Chapter 7