non exempt property bankruptcy
Chapter 7 Bankruptcy.. help.?
Okay so here’s the deal. My best friend has gotten herself in a bit of a situation. She is 19 years old and wanting to file a Chapter 7. I have done some research myself into Chapter 7, and i personally think she is going to regret it.
She has about $30,000.00(so she says, i think its less.) in unpaid hospital bills, and cell phones, and she wants to file for a chapter 7 and get a “fresh start” but, she doesn’t OWN anything. she only has a car that she is still paying off. From what i’ve found on chapter 7 through the us courts website is that they take all non-exempt property and sell it to pay of creditors. well what if she doesn’t own anything?
so, does anyone think that she should/would be able to do this, or is there another option?
The vast majority of Ch 7 bankruptcies are “no asset” cases, meaning that there are no non-exempt assets that can be liquidated to pay creditors. Only about 4% of Ch 7 debtors have assets that are liquidated to pay creditors. The rest simply get their debts discharged, and creditors are repaid at the rate of 0%.
