An assisted person, in the context of bankruptcy, refers to any individual whose debts are primarily consumer debts and whose nonexempt property is valued at less than $164,250. This definition is outlined in federal bankruptcy law, specifically under 11 USCS § 101. Essentially, it identifies individuals who may qualify for certain types of bankruptcy relief based on their financial situation.
The term "assisted person" is primarily used in bankruptcy law, which is a part of federal civil law. It plays a crucial role in determining eligibility for filing under specific chapters of bankruptcy, such as Chapter 7 or Chapter 13. Understanding this classification can help individuals navigate their options for debt relief, including using legal forms and templates available through resources like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A single parent with $30,000 in credit card debt and a car worth $10,000 may qualify as an assisted person, as their debts are primarily consumer-related and their nonexempt property is below the threshold.
Example 2: An individual with $200,000 in business debt and a home valued at $300,000 would not qualify as an assisted person since their debts are not primarily consumer debts. (hypothetical example)
The primary statute governing the definition of an assisted person is found in federal bankruptcy law, specifically 11 USCS § 101. This section outlines the criteria for individuals seeking bankruptcy relief.
| Term | Definition |
|---|---|
| Debtor | A person or entity that owes money to another party. |
| Consumer Debts | Debts incurred for personal, family, or household purposes. |
| Nonexempt Property | Assets that can be sold to pay creditors in bankruptcy. |
If you believe you qualify as an assisted person, consider the following steps:
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Consumer debt includes debts incurred for personal, family, or household purposes, such as credit card debt or personal loans.