Is my Bankruptcy a No Asset Bankruptcy?

One concern people have when filing bankruptcy is that, after filing, they will have no money left to start a new life. In reality, most people who file Chapter 7 bankruptcy wind up filing what are known as “no asset” cases, meaning they pay back nothing. After applying the Missouri bankruptcy exemptions, it may be possible that you discharge all unsecured, non-priority debt without paying anything more than attorney’s fees. An experienced bankruptcy attorney can examine your situation in-depth and give you an idea of what you will owe. If it is a no asset case, they will help you get a fresh start without owing any more debt.

The exemptions in Missouri allow for a variety of items to be kept in bankruptcy. For instance, this state allows a person to apply $3,000 to their motor vehicle (for a single filer). Depending on the type of vehicle you own (and any money you may potentially owe on the car), you could keep your vehicle without liquidating it in bankruptcy.

Another important exemption is a “tools of the trade” exemption. If you are a mechanic, for instance, you likely have thousands of dollars invested in your tool supply. The law allows you to apply up to $3,000 on these tools, allowing you to continue working while you file for bankruptcy. This is crucial because it allows you to continue earning money during and immediately after you discharge your debt.

The fact is that a majority of Chapter 7 cases are no asset cases. If you are below the median income in Missouri or can pass the means test and you are not barred from filing due to time restrictions, you should be able to discharge your debt without paying back anything.

At Westbrook Law Group, we will examine your situation and find any and all exemptions that may apply. We will do everything possible to help you keep your hard earned assets while discharging all unsecured, non-priority debt. For a free consultation with a bankruptcy lawyer, contact Westbrook Law Group right away.