Chapter 7 - No Asset
There are two major types of Chapter 7 bankruptcies. Each type has its own unique procedures. A "no asset" case is one in which you are allowed to keep all of your personal property. Each jurisdiction has laws called "exemptions" which allow you to keep specific types of property, such as tools used for your business, clothes and household goods. A no asset case is the quickest type of bankruptcy, as the court does not have to sell off any of your property.
Chapter 7: Asset Case
Not all property is exempt. If you own non-exempt property, you have an asset case. For example; you have an asset case if you are gifted a speed boat valued at Twenty Thousand Dollars ($20,000.00). It would be unfair to allow you to keep this luxury item without paying your creditors. In certain circumstances, that speed boat would either need to be sold by the court or you would have to pay for the value of the boat to keep it. This is an asset case, and these cases can be very complicated.
Why you need a lawyer.
A bankruptcy lawyer will be more familiar with the exemptions where you live. A lawyer will be able to help you maximize the amount of property you are allowed to keep as part of your bankruptcy proceedings. Contact a lawyer in order to get more information regarding the type of bankruptcy that is best for you.