Chapter 7
Liquidation bankruptcy filing
Chapter 7 refers to a section of the U.S.
Bankruptcy Code that allows individuals or businesses to liquidate assets to pay off debts.
Unlike Chapter 11 or Chapter 13 bankruptcy, which involve reorganization or repayment plans, Chapter 7 typically results in the discharge of most unsecured debts: They had to file Chapter 7 after the business failed.
The term often appears as shorthand for this type of bankruptcy filing.
- means testEvaluation of financial eligibility
- liquidationSelling assets for cash
- bankruptcy codeStatutes governing debt discharge
- debtorOne who owes
- personal bankruptcyLegal declaration of inability to pay
trustee · bankruptcy court · insolvency · financial distress · go bankrupt · bankruptcy petition · debt relief · fresh start · wipe the slate clean · clean slate · creditors · broke · filing · assets · court · petition · cramdown · relief
- financial ruinbankrupt, bankruptcy, bust, busted, broke
- dissolutionbreakup, breakdown, liquidation, wind down, disintegration
- bankruptcybankruptcy, bankruptcy court, bankruptcy petition, bankruptcy code, bankruptcy filing
- insolvencyinsolvency, bankruptcy court, liquidation, bankruptcy, creditors
- debt reliefdebt relief, debt forgiveness, debt settlement, debt cancellation, debt negotiation
- liquidationsliquidation, fire sale, closeout, forced sale, bankruptcy sale
Chapter 7Chapter 11
Business debt reorganization process
Chapter 13 · corporate reorganization · reorganization · restructuring
Chapter 7solvency
Capacity to pay debts
going concern · financial recovery · debt restructuring · profitability · financial health
- new chapterDistinct period starting now
- chapter oneOpening portion of text
- chapter and verseExact documented source details
- next chapter
- final chapterLast section of book
- chapter booksSegmented longer narratives
chapter, chapters, chaptered, chaptering, subchapter, chapterhouse