Can I Declare Bankruptcy if I Don't Own Any Assets?

Posted By Law Office of Simon Goldenberg, PLLC || 10-Nov-2017

We are occasionally approached by clients who aren’t sure of what they can do when they need to declare bankruptcy, but don’t own much in the way of property and assets. For starters, they have a high amount of debt, but to add to their woes they own almost nothing. Often times these people have no savings, no retirement, and nothing more than a simple car, a few changes of clothes, and maybe a lease on a small apartment.

The good news for these individuals: you can still declare bankruptcy! In fact, because you own so little non-exempt property, odds are you stand to lose very little, your case will be extremely straightforward, and you’ll be able to benefit from the process just like anyone else would. Here’s more information regarding no-asset bankruptcy cases.

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How to File

A no-asset bankruptcy is simply an informal way of saying a Chapter 7 bankruptcy case where person declaring owns no non-exempt property. The filing procedures are all exactly the same as a normal bankruptcy petition, with a few exceptions that actually simplify everything.

Bankruptcy Petition
You will still need to take a credit counseling course and pass the means test in order to qualify for Chapter 7, but otherwise you’ll simply have to fill out the correct petition forms.

Automatic Stay
The automatic stay will go into effect as soon as you file your petition, which prevents creditors from continuing collection activities.

The Creditors Meeting
You’ll have to attend a meeting of your creditors in which you’ll have to ask a series of questions about your debts and property. However, since you own so little, these questions will probably fairly easy to answer since your situation is so simple. In fact, your creditors most likely won’t even attend since you have no non-exempt property. Therefore, your meeting probably won’t last long.

Discharge
Once your process is complete, your unsecured debts will be discharged, meaning you’ll have the ability to start from scratch and rebuild your credit. Be sure to use this opportunity to make good financial decisions!

For more information, call the Law Office of Simon Goldenberg, PLLC today at (888) 301-0584 and let a New York debt relief attorney help you find the solution you need when you’re struggling with crippling debt!
Categories: Bankruptcy, Chapter 7

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