When you are entering into a bankruptcy the first thing that has to be considered is whether you are a Chapter 7 or Chapter 13 bankruptcy candidate. You may not be aware of these various types of debt relief. It is highly recommended that you utilize the services of a bankruptcy attorney to not only help you choose the right form that is best for you, but to take you to the inside entire process.
You may hear the term Chapter 7 No Asset Bankruptcy. This happens to be the most common type of bankruptcy that takes place throughout the US. What it means is that you do not own any non-exempt assets that can be sold to pay off your debts.
The trustee that is assigned to your bankruptcy has a responsibility of reviewing all of your assets. If it turns out that all that you own is exempt then the trustee has to file what is called a no asset report which means that any of your creditors named on your bankruptcy will not be receiving any form of payment.
If you did have assets that were not exempt then these could be sold in order to meet the responsibilities that you have to your creditors. There are federal bankruptcy rules that every state must follow but there are also state rules as well. Each of these has their own exemption list. In some states you are allowed to choose whether you want to use the federal list or the state list, and in other states you will be required to follow the state exemption list.
Your professional advisor will help you determine whether your case is going to be a no asset bankruptcy. Many times individuals feel that when they go into a bankruptcy that they are going to lose everything that they own. This sometimes prevents them from following through with this type of debt relief until they reach the point where creditors are about to seize their assets. It is far better to go into a Louisville bankruptcy before reaching this level of financial distress if this is the only recourse that is available to you to help you get back on financial track.