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No Asset Report Law and Legal Definition. A no asset report is a term used in bankruptcy law when all the debtor's assets are exempt or subject to valid liens. The trustee will normally file a no asset report with the court, and there will be no distribution to unsecured creditors. Most chapter 7 cases involving individual debtors are no asset cases.
Simply stated, a Chapter 7 bankruptcy with no assets case is just that, no assets involved. This means is that you, the filer, own nothing of value for creditors to liquidate. It does need to be understood that engaging in a no asset Chapter 7 is almost as much work as filing chapter 13. The Basic Premise of Chapter 7. Chapter 7 bankruptcy allows the debtor to walk away from their debts and gives them a chance to start fresh. All debts will be discharged upon completion and you are now free to start over financially. Creditors will no longer be able to collect money after discharge. Defining What Is Meant By Assets. Anything you own may be considered an asset. That includes every article of clothing you wear. You may own an older desktop PC or laptop.