What if the debtor has no non-exempt property for the trustee to collect?
If, from the bankruptcy forms filed by the debtor, it appears that the debtor has no non-exempt property, a notice will be sent to creditors advising them that there appears to be no assets from which to pay creditors, that it is unnecessary for them to file claims, and that if assets are later discovered they will then be given an opportunity to file claims. This type of case is referred to as a no-asset case. Most chapter 7 cases that are filed by consumers are no-asset cases.
