Asset or No Asset that is the question

[Itried]

Hello fellow BKians -

I was hoping that someone could explain the difference between Asset and No Asset case in a Chapter 7? My mom always said that no question was a dumb question, so I am asking.

I was checking my pacer account and it says No Asset, so I am assuming that is good, right?

Thanks in Advance.

[HHM]

No Asset = based on what you own and the exemptions available to you as a debtor, their are no assets or money the trustee can seize and sell to pay your creditors.

Asset = An asset case is when you own an asset or have money that cannot be exempted, and the trustee takes that asset/money and uses to pay creditor who file a claim in your chapter 7 BK.

The Asset/no asset designation is fluid. The determination of whether you case will "ultimately" be an asset or no asset case is made after your 341 meeting.

[lrprn]

I was hoping that someone could explain the difference between Asset and No Asset case in a Chapter 7?

In bankruptcy, an asset is any item of value owed by a filer including cash, stocks, bonds, investments, and property.

A no-asset Ch 7 case is one where the trustee determines that all assets of the filer are protected by their state's exemptions so there are no assets that can be repossessed or sold to pay creditors back some of what you owe.

An asset Ch 7 has financial assets that can't be protected by the filer's state bankruptcy exemptions. The assets are then taken by the trustee and liquidated, or the trustee may make an offer for the debtor to buy back the unprotected asset. The trustee then distributesthe cash from the asset sale or the debtor's payments equally to creditors that file claims to be paid from whatever is obtained from the sale of the assets or the debtor's cash payments.

I was checking my pacer account and it says No Asset, so I am assuming that is good, right?

Yes, it's what every Ch 7 filer hopes for. No asset means the trustee has determined that you don't have unprotected assets. Now you just wait out the 60 days after your 341 meeting to make sure no creditors file objections (and 99.99% of the time they don't). You're on the downhill ride to discharge - congrats!

[Itried]

Thank you both for the explaination.

24 more days and counting

[gophermn]

Does Pacer show if you are or are not an asset case? I know it took me a little over 2 weeks to list my filing as a no asset.

[Itried]

I am not sure when it happened, because I wasn't really looking for it, but pacer does show NO Asset now for me. :-)

[gophermn]

show NO Asset now for me. :-)

There ya go - CONGRATS!!

[sunshine mary]

Since were on the subject...My CH7 is listed as no asset but I'm sure it will change after our 341 if I read that right ^^ there. Were hoping to buy back the non exempt things but if we can't no biggie were discharging a massive amount of CC debt. So my ?? is how long will this hold up the case? Our attorney did say we wouldn't be "closed" until the buy back is complete . Is there something else I am missing?