How to quailify for No Assests Case

[brokendown13]

Can anyone explain what the quailifications for a no assests case may be?

Thanks

[dingdong]

You are a no asset case when:

You have no assets,(property or cash/savings etc) that are not covered by exemptions.

Or the trustee decides to abandon interest in any assets that you may have that are not covered by exemptions.

So, hypothetically, say you have a car and are upside down (owe more than it is worth), have little cash/savings and no equity in your home, you would most likely be determined a no asset case.

Assets are things a TT can sell/claim to pay off creditors.

If you had 50,000.00 in the bank and only 10,000.00 of it was covered by exemptions, 40,000.00 of it would be an asset.

[brokendown13]

thank you for the response