Asset vs. No Asset

[Kingxray]

As some of you may know from my previous threads that the UST filed a statement of presumed abuse and asked for additional documents. Our lawyer is handling this and we are just sitting here in limbo.

Our case looks like this on Pacer: No Asset, Reaf, meansyes, nodisch.

We own 2 homes and reaffirming one and surrendering the other. The one we are surrendering has a fair amount of equity that can be divided among our creditors. The reaf was removed from our flags today and document file about our reaffirmation stating "no hearing required".

Our lawyer believes we should be an asset case. What's the difference between an asset and no asset case. Should I care? How can it affect our BK? Thanks all.

[Help!]

Yes, if the home you're surrendering has a fair amount of equity and your exemptions do not fully cover that equity you will become an asset case. If the home you're attempting to reaffirm also has some equity, you may be forced to surrender it as well. Being an asset case is actually a good thing when you're up against presumed abuse. If asset liquidation could net more to creditors than payments from a 60 month Ch. 13 plan, it makes it far more likely that the UST will file a declination and allow your case to discharge. I would be asking the lawyer exactly which assets he feels could be liquidated in order to mentally prepare for that outcome.