Frequently Asked Questions
What happens in a no-asset case?
In a no-asset case, the bankruptcy trustee determines that there are no nonexempt assets available to be sold or distributed to creditors. As a result, the debtor is typically granted a discharge of their debts without having to make any payments to creditors.
How is a no-asset case different from an asset case?
In a no-asset case, the debtor does not possess any nonexempt assets that can be used to repay creditors. In contrast, an asset case involves the debtor having nonexempt assets that can be liquidated by the bankruptcy trustee to satisfy the claims of creditors.
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