Asset case

An asset case is a type of bankruptcy where the debtor possesses assets or cash that can be liquidated to repay creditors.

Unlike a no-asset case, where the individual has nothing to offer creditors and debts may be discharged without repayment, an asset case involves distributing proceeds from the sale of non-exempt property.

The bankruptcy trustee is responsible for identifying, collecting, and selling these assets, then distributing the funds according to legal priorities. Creditors must file claims to receive a share.

Asset cases are more complex and can take longer to resolve, but they provide at least partial repayment to creditors while still offering financial relief to the debtor.