Why declare bankruptcy if you do not have any assets?
If you have no assets, then it's a great way to get rid of debt. Chapter 7 bankruptcy is FAST, and normally pretty cheap compared to what you get (all your debt gone). If you have assets, you may be forced into a Chapter 13 and have to pay back some debt. Answer I like Nate's answer. But, if by your question you mean "I don't have any assets for creditors to come after, so why bother filing bankruptcy?" then I would say that there still might be reasons one would want to file. For example, even if you don't have a home or car that is subject to a judgment lien, creditors can still garnish wages (but not Social Security). Or, creditors can simply hassle you constantly on the phone. Another thing creditors can do, in Indiana at least, is sue you and keep dragging you back to court every month or so to explain why the judgment isn't paid. Then, the first time you miss a hearing, the creditor asks the Court to put a Writ of Attachment on you, which is basically a warrant for your arrest for contempt of court since you missed a hearing at which your presence was ordered by the Court. So, just because you don't have any property the creditors can take away doesn't mean that you don't need to file bankruptcy. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person. ANSWER You should consider petitioning for your own bankruptcy if you have debts that you cannot afford to repay. A large percentage of individuals who petition for their own bankruptcy have no assets and use bankruptcy as a solution to their debt problems. However, bankruptcy is widely regarded as a last resort and should be considered only after receiving expert advice.
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Perhaps. If the filing party is on a deed for real property or joint bank account with the others that property might be "frozen" until the amount each party is entitled to is… proven. It will depend on what the property is and how it is titled. If this is the issue it would be advisable to consult a bankruptcy attorney.
Answer . hide the assets then file.
Answer . \nIn a Chapter 7 discharge all debts included are "forgiven" meaning the creditor can no longer attempt collection procedures. A Chapter 13 is a debt consolidatio…n (repayment agreement) BK, in which a specified amount set by the court is paid by the debtor to the BK trustee. The trustee then distributes the funds to creditors in the prescribed manner and priority, until the terms of the BK are fullfilled. Any debts not included in a BK are considered valid and collectible. Secured property must be reaffirmed with the lender or reliquished by the debtor/borrower.. Answer . \nYour creditors loose out. You have a terrible time in the next 7 - 10 years trying to get credit from anyone for any amount. You then start from scratch once you get new credit.
If the court requires they sell certain things at auction, you are as able to bid on them as anyone. And anyone can out bid you.
The debtors is th one who files BK.. Basically, it's pretty simple: all of their assets are used to pay off all of their debts.. If they don't have enough assets to pay all …the debts, the excess debt may be dismissed by the court.. Some debts (which are whata debtors owes creditors), may be paid in full and some only in part. If the debt is secured by a specific item, say a car or house, the money from the sale of that item will go firt to that specific creditor.. Some assets (like certain retirement accounts, workers tools, kitchen set, very personal things) as well as certain debts (like student loans, court judgements, child support) are not included in the BK process.
yes this is usually what is done, as this is how the business may pay off some debts.
Basically, you file a petition with the US FEDERAL Bankrutpcy Court, providing a great deal of financial and other info, and ask them to provide protection for you from credit…ors, and to take control of your financial affairs and try and resolve your situation.. If they agree to do so - first they instruct all crediotrs to hold off from any collection actions...stoping (at least for a while) repossession or forclosure for example.. Then the appoint someone to andle your affairs and get all the information from you and your creditors. He workks to resolve your debts and obligations, in the prorities established by the laws and your loan agreements, using the assets you have.. When the process has gone it's course...and as much is settled as can be, the Court may discharge (that is eliminate) any debts still existing and give you a fresh start.
At the moment the court receives the petition, and gives it a docket number, all the debtor(s)' assets are "frozen" as they become property of the bankruptcy estate, administe…red by the trustee. In a Chapter 7, if the trustee files a finding of no assets, which mean the trustee accepts all exemptions claimed by the debtor(s) and there are no assets to be sold to satisfy the creditors, the property is available once more to the debtor. In a chapter 13, the freeze continues until the plan is approved except for regularly occurring payments for utilities, food, etc. In both cases, if the case is dismissed, the property is also unfrozen.
No asset bankruptcy is a term used to refer to Chapter 7 bankruptcy. Usually in Chapter 7 cases, a person's entire debt is wiped clean. In many cases, the bankruptcy court wil…l assign a trustee to take certain belongings (assets) and sell them to pay off a debt. In quite a number of cases, the courts have found that the person has no assets to sell (they won't take away items that will make your life unlivable without). If this happens, your case is considered a "no asset" case.
A basic, rough primer: BK is always done under FEDERAL Laws, in a Federal Bankruptcy Court. Basically State makes little difference. (Yes the BK Courts operating in cer…tain areas have certain special exemptions and such, minor in the overall, generally intended to make things adhere to the local laws and customs better). Federal Bankruptcy Courts handle cases in their jurisdiction, which is determined without any real regard to State lines or such. There are many, many Districts, made according to what the Feds feel are their needs. In a personal bankruptcy, YOU go bankrupt. Not a debt, not a loan...not a car...not a house or a this or that. ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. They are all , always involved in some way. BK may stall off a foreclosure for a short while, but it is entirely different than one, and will NOT prevent the ultimate loss for long. Which is to say, in simple terms, you either pay for your house AND all the liens against it, or you lose it...there is no magic or legal action that will have a different outcome. After filing and disclosing everything, the court will then order each of them in priorities according to the laws. Some things may be exempt from use or discharge (like your personal furniture and retirement accounts are exempt and child support and most court imposed fines or penalties cannot be discharged) - and the rest may be used. With one to pay the other. AGAIN - THEY ARE ALL INCLUDED AND LISTED - how or if the BK will effect them is decided by the Court & Laws. (All possible creditors are contacted and asked to say what they are owed....you may be required to even take advertisments out to make sure everyone is notified). Not including everything is lieing to the Court and probably won't have the effect you want anyway. And think about it...it's on your credit report, ot its on a credit application you made (and that creditor wants to know what happend to it...unless you lied on the application = criminal fraud). Any deal you've done for several years is open to scruitiny and review. The court can reverse them, take them out of the BK, or even have them prosecuted as trying to defraud your creditors. (So, no you can't sell your boat to your brother and then declare BK). PAYDAY loans, while under the actual law may be denied discharge (as they renew every 30 days and are therefore too close to filing and are considered made in anticipation of BK), because of how abusive and unfair they are, if taken out a bit before filing, most judges will indeed allow them to be discharged - regardless of the many good arguments the lender has. Virtually all legal penalties and fines can not be discharged as that is against the "public good'...BK is not intended to allow you to avoid paying for your misdeads and avoid the consequences of prior actions of that type. No, it won't lessen your jail term either. Debts secured by an asset (say a car or house mortgage) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder of that debt becomes a general or unsecured claim against the BK., and has a chance to payment on that level too (albeit a lower priority than those who have yet to receive anything). The end/remaining amount that can't be satisfied is generally discharged by the court...meaning you no longer owe it. You get a fresh basically debt free start....many of those you owe don't get paid what they had expected and relied on, if anything. There are many other considerations too. BK will severly hurt your ability to get credit for a very long time for example. It is on your credit report for at least 10 years...and employers refer to that too, as do landlords and more. Many do not trust people with bankruptcies in their past, especially in the last few years. Many more things. That you have done so is actually available to all, as a matter of public court records, for much longer than the 10 years it is on your credit report. Not disclosing all items is frequently tried and easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well). Many seem to fall into the trap thinking that they can trick or change or especially shortcut the system, or want to believe what they wrongly understand overrides things (like I don't have to report that asset because it is exempt). It simply ain't going to happen. The courts, Judges, laws, bankers, all those zillions of attornies, etc, have been through this thousands of times for many, many years. The processes are fairly well worked through and prepared for tricks and games. It is unlikely you would discover one that hasn't been tried a zillion times before! The Cos that claim they can change your record, or make magic happen (either before or after BK), are scams , and getting caught doing something unsavory (intentional or not), other than screwing up your bankruptcy filing, is frequently considered and persued criminally. (Think your financial troubles are bad, try adding in criminal ones). The legal process and system is demanding even for those experienced with it. Many of your creditors will have an attorney to assure they get as much as possible, even groups of lawyers, who specialize only in bankruptcy. Simply you should/better/need to have one too
That is not how a Chapter 13 is usually described, since assets are irrelevant except to compare what a Chapter 7 would provide to unsecured creditors. But it is possible tha…t the monthly income or the means test shows the debtor can do a plan, even though the debtor has no non-exempt assets.
It depends on the specific type you are filing for. But whether you are an individual or a corporation, the monetary amount of debt, and how much you make annually can all fac…tor into the equation of qualification.
You declare when your debts become too overwhelming to ever pay off. But you must qualify first. The qualifications vary according to the chapter of bankruptcy you are filing …under but major aspects are the monetary amount of your debt and your annual income.
Secured creditors to the extent of their security on specific property (e.g., mortgage interest on real property)
This mainly depends on the country one lives in. In Germany, for example, private individuals are allowed to declare "personal bankruptcy". Afterwards one has to meet strong r…egulations regarding income and spending.
When in bankruptcy it is not possible to have a credit card. Once the terms of the bankruptcy have been met, some credit card companies will consider issuing a credit card to …some people.