November 20th, 2008 by Reed Allmand 
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.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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