What happens if the debtor has no nonexempt property for the trustee to collect?
If, from the debtor’s Chapter 7 forms, it appears that the debtor will have no nonexempt money or property, a notice will be sent to the creditors advising them that there appears to be no assets from which to pay creditors, that it is unnecessary for the creditors to file claims, and that if assets are later discovered the creditor will then be given an opportunity to file claims. A trustee will be appointed, however, even if the debtor has no nonexempt assets for the trustee to collect, and the debtor must cooperate with the trustee.
