It has been another fun filled week in bankruptcy. We have had two cases in particular come in, that we were told were Chapter 13’s, but after drafting the petitions, it appeared that the clients would be able to file a Chapter 7.
Both cases were below median income for the jurisdiction, one had two prior filings, but neither case had a prior filing in the last eight years, and they were both “no asset” cases.
What is a “no asset” case?
A no asset case is one in which after applying all allowable exemptions to the debtor’s property, that there are “no assets” left…nothing that could be returned or liquidated to payoff creditors.
We alerted the attorney immediately, who after reviewing the petitions, agreed that both cases could and should be filed as Chapter 7 cases.
Imagine how pleased both of these clients were, when they discovered that would be able to file a Chapter 7 bankruptcy, instead of a Chapter 13 bankruptcy, and instead of being married to their bankruptcy via monthly Chapter 13 Plan payments for the next 60 months, they now have the expectation that their cases will be favorably discharged in just a few months, with all of the unsecured debts wiped away, and they can move on with their lives. How refreshing!
This is one example of how important the role of a virtual bankruptcy assistant is, and why it is important to understand the information entered into the debtor’s bankruptcy petition.
If you need to hone your understanding of Chapter 13 bankruptcy, and improve your skill set to help you identify when the case you’re working on is truly a Chapter 13, or whether it can qualify for a Chapter 7, please visit the Chapter 13 Training page of our website at:
www.713training.com/categories/Chapter-13-Training/?sort=priceasc
Our most popular items are:
Chapter 13 Seminar Training Kit
www.713training.com/products/Chapter-13-Seminar-Training-Kit.html
Chapter 13 Training in Mortgage Cram Downs and Strip Downs
www.713training.com/products/Chapter-13-Training-in-Mortgage-Cram-Downs-and-Strip-Downs-%28VIDEO%29.html
Wishing you the best.
Sincerely,
713 Training Team
713Training.com
www.713Training.com
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DISCLAIMER: We at 713 Training are not attorneys; any information provided by 713 Training should not be considered legal advice. The information in this article, and any other materials provided by 713 Training, whether delivered verbally, written or via any other means, including electronic/digital delivery and storage, is for training purposes only, and is intended for individuals who work under the direction of a licensed attorney.
