About Me
“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Although Chapter 7 bankruptcy trustees seek to liquidate assets, they close most cases as no-asset cases
Written by Craig D. Robins, Esq.
.
Most Chapter 7 bankruptcy cases are “no asset” cases. That means that the trustee examines the debtor and closes the case without administering any assets.
In these situations, the trustee has concluded that whatever assets the debtor has, whether they may include a house, car, money in the bank, or personal possessions, are either exempt, or have such a small non-exempt value that they are not worth administering.
When a bankruptcy case is a no-asset case, the trustee will file a certification pursuant to Federal Rule of Bankruptcy Procedure 5009 indicating various information as part of the process of closing the case. This is called a “no asset report” and it means good news for the debtor, because the trustee has decided to close the case without taking any further action.
Most Chapter 7 bankruptcy cases on Long Island are closed with no asset reports.
The no asset report includes statements from the trustee that he has neither received any property nor paid any money on account of the estate; that he made a diligent inquiry into the financial affairs of the debtor(s) and the location of the property belonging to the estate; and that there is no property available for distribution from the estate over and above that exempted by law.
In the report, the trustee further certifies that the estate of the debtor(s) has been fully administered, and that the trustee requests to be discharged from any further duties as trustee.
Most Long Island Chapter 7 bankruptcy trustees file their no asset reports within a few days or weeks after examining the debtor at the meeting of creditors.
