Assets

[ccfriend]

I was checking on Pacer and my case has a yes by Assets. I am just wondering what makes some cases asset cases and other cases not asset cases.

[frogger]

The trustee must think that you have something of value that they can sell.

[justbroke]

I really haven't seen any "no asset" Chapter 13 cases. This flag is important in the Chapter 13 context. In order for creditors to be paid in a Chapter 7 or Chapter 13 case, the case must be an asset case. Even if your DMI is negative or $0.00 and you're paying $0 to creditors, the potential that it becomes an asset case is high!

For example, in Districts which require all tax refunds to be handed over to the Trustee... automatically makes it an Asset case!

[jdcat]

Justbroke are you saying that some chapter 13's will have no monthly payment because of no DMI but will remain a thirteen, versus being bumped to a 7, because the tax returns would be taken instead? I had not heard of that so you have me curious.

[justbroke]

This depends on your District. Most Districts allow a 0% payback to the unsecured creditors, meaning that you have a $0 or negative DMI, yet you are allowed to confirm a plan paying nothing! There are a handful of Districts that think you should at least pay back 10% in order to get a plan confirmed.

A Chapter 13 always has a monthly payment, because you are paying something. Whether it's secured debt, attorney fees, trustee fees and/or unsecured debt payments (based on DMI)... you're paying something. Now whether you pay things "inside" the plan or "outside" the plan is another matter, and my post makes no such distinction.

If you're in a Chapter 13, you're in one because you have regular income and there may be a potential that unsecured creditors could receive a dividend. yes, even if you have negative DMI, it is "possible" that creditors could receive a dividend if any number of things were to occur ("significant" increase in pay at work, tax refunds, etc).

I can't define what "significant" means, and not all Districts take tax refunds.

[jdcat]

Thanks for answering so quickly.