No Asset Case
Definition - What does No Asset Case mean?
As part of a Chapter 7 bankruptcy, a no-asset case is one where there are no assets owned by the bankrupt individual that is available to be sold against the debts owed. The Trustee has the ability to determine the value of any item that a person owns. If the value is under a set amount, usually $500, the Trustee will not be able to take it to be sold. Trustees are also not able to take any asset that is integral to a bankrupt person's life. If there are no assets to sell then the case is considered a no-asset case.
Justipedia explains No Asset Case
There are some states where the value of a person's property is much lower than the average $500. In such instances, an auction will be set up by the Trustee. However, in cases where no asset is available to be sold, this step will be left out. In most states, assets that are co-owned by a bankrupt person with another person who is not a party of the bankruptcy are assets that cannot be included in the case.