There are some individuals that will state that they are going bankrupt because they have nothing to lose anyway. In a sense what they are referring to here is a no asset bankruptcy. In most cases this is applicable to many of the individuals that are going through a Chapter 7 bankruptcy.
In fact, the majority of Chapter 7 bankruptcies that take place throughout the United States are classified as no asset bankruptcies. This means that the individual that is filing for this action doesn’t own any non-exempt assets.
In this case, it means because there are no assets they don’t have anything that can be sold that will satisfy the creditors. As soon as you file for bankruptcy what happens is that any of your assets or things that you own become a part of a bankruptcy estate. Then an individual that has been given the title as a trustee is appointed to oversee your case.
This individual has a responsibility to see if you have any assets and if so, to ensure that they are sold if this falls within the realm of the bankruptcy laws to satisfy your creditors.
If you do happen to own property, there are several exemptions of property that will not be included in your bankruptcy and if you have some assets that fall into this category then it means you won’t lose them.
Even though you may have some assets you could still be involved in a no asset bankruptcy. What this would mean is that everything that you do own has been exempted from the bankruptcy. In this case the bankruptcy trustee will then complete a no asset report and any of your creditors will not be able to recoup anything that is owed to them.
Contact an experience Texas Bankruptcy Attorney to find out what assets you own that could be saved during bankruptcy.