What is Chapter 7?

Definition:

Part of Title 11 of the Bankruptcy Code. Chapter 7 sets out the process by which a US entity is either forced to file, or voluntarily files, for Bankruptcy. Upon filing a petition in the bankruptcy court, a Trustee is appointed to liquidate the company and distribute its assets to its creditors in order of their Priority. This is the most common form of Bankruptcy in the United States.

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