When you are filing for Chapter 7 bankruptcy, only then you get a chance to go for no-asset bankruptcy. It is typically the procedure where the court liquidates our assets and non-exempt property to pay your creditors. There might be a cherished asset that you might not want to sell off while filing for bankruptcy. And that is why every state allows the filers some exclusions that can include your primary residence, car, business equipment, and so on. When you are filing “no asset” bankruptcy, it will increase your chances of getting these exceptions. However, while filing for Chapter 7 bankruptcy, you want to be sure that you are getting all your bases covered. And for that, you need to consult an experienced Pittsburgh bankruptcy lawyer.No Asset Bankruptcy
Filing no asset bankruptcy can be extremely beneficial when you are trying to wipe off your debts and pay your creditor zero for their money. When you are filing this, the court-appointed trustee will identify that you have no vulnerable assets. They will allow your exemption to cover the value of your real property and leave nothing from which your creditor might get their money. The filing will prevent the trustee to auction off your property. This means that with the discharge of the filing, the creditors receive zero money. The debt will be completely washed off by the court.
From the time you file for bankruptcy, you lose ownership of your property. It goes to the trustee that will or can determine if liquidating your assets will pay the debts off for you or not.
Now, even if you are filing for bankruptcy because your spending has outweighed your income and landed you on debts, you don’t need to let go of all your assets. You surely need a home to live in, cars to go to work, and certain amenities to continue with life. When you are filing for bankruptcy, you are starting afresh. So, don’t dig up a bigger hole by including all property and assets yours and get stripped of everything you have. For more detailed consultation talk to our Pittsburgh bankruptcy lawyer.What Debts Don’t Get Discharged With Chapter 7 Bankruptcy Filing?
When you are filing for Chapter 7 bankruptcy, the court is going to expunge the unsecured debts. The rest of your debts will survive the process. Secured creditors like the provider of the mortgage loan or student loan will pursue you for the repayment once the bankruptcy time is over. This might include the action for repossession or foreclosure. So, as you can see, you are completely not out of debt. But filing bankruptcy will erase your unsecured debtors that can include your credit card provider or the medical bills. That will leave you a substantial amount in hand that can be used for paying for the mortgage or student loan.
Your Pittsburgh bankruptcy lawyer might negotiate with your creditors for settling for a smaller amount. They might agree to that when they are sensing that you might file for bankruptcy. And if that doesn’t work, your last resort is filing for Chapter 7 bankruptcy.
If you are looking for sound financial advice and help in the process, talk to us at Pittsburgh Bankruptcy Law Group. We can show you the right way.