Chapter 7 and Chapter 13 bankruptcy were designed to help families and individuals protect property, assets and money from seizure by creditors. Whether it’s a home, bank account, a car needed to get to work or wages, bankruptcy is available to give an overwhelmed debtor a fresh start. But what if a debtor has no assets? No bank account, no job and no home? What if a debtor is, what is commonly referred to as "judgment proof"? Is bankruptcy a good option for a debtor like this, a person with no assets? Well, if you’re a debtor with nothing and plan to stay that way for at least the next 7 years or for the rest of your life if you have non-dischargeable debts (i.e. student loans, child support) then bankruptcy is probably not for you. But if you plan to eventually have a job, a home and some money in the bank, bankruptcy is a great option especially if you currently have no assets.

Filing for bankruptcy when a debtor has nothing, can give him/her the opportunity to get on their feet without creditors hot on their heels. After the bankruptcy, the debtor won’t be subject to liens and garnishment of wages when he/she finds a new job or begins to accumulate money in a bank account. But most importantly, bankruptcy will give the debtor peace of mind and freedom from harassment by creditors.

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