Definition - What does Asset or No Asset Case mean?
An asset or no asset case will depend on whether the bankrupt person has any assets that can be sold in order to pay back the liabilities being referred to in the bankruptcy. If the person has no assets, then the bankruptcy is filed as a Chapter 7, and the person will be relieved of all debt payments. If the person has assets, then the case is usually filed as either a Chapter 7 or a Chapter 11, and any assets that hold a value over a certain amount has to be sold. Most states allow the exemption of the family home and of one vehicle from the consideration of any assets.
Any assets that hold a value over a set amount is required to be liquidated for a bankruptcy, regardless of provenance or sentimentality. For instance, it common for people to have to sell their wedding rings in order to satisfy part of the bankruptcy repayment plan. The usual amount is $500, and any asset that does not hold that value does not have to be sold; in some states this value is $100. It is important to remember that hiding any assets during a bankruptcy is a felony and is treated very seriously.