Asset vs No Asset

Most Chapter 7 bankruptcy cases (around 90%) are non-asset cases. A non-asset case is one in which there are no assets to administer by the trustee. That means that all of the stuff the debtor owns is fully exempt. A no asset Chapter 7 case takes about 4 to 6 months from filing to discharge.

If the debtor owns an asset that is not exempt or that is only partially exempt then they have what is known as an asset case. This means that the trustee will sell the debtor’s stuff in order to pay creditors. This process takes a longer period of time and these cases usually last 1-2 years depending on the asset and the trustee.