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.
Ready to start earning income drafting bankruptcy petitions from home? See our online bankruptcy petition training courses at www.713training.com. You can also join our online community at www.navba.org.