Business Terms Glossary
Chapter 7
Definition of Chapter 7
Chapter 7 is the part of the Bankruptcy Code that provides for liquidation of a company's assets.
Companies that file for Chapter 7 are essential closing up shop. The bankruptcy trustee takes control of the entity, assets are liquidated, and creditors that file a claim are paid pro rata out of the proceedings.
Chapter 7 References On This Site
These Gaebler.com articles mention this glossary term:
- How to File for Bankruptcy - Federal law generally allows for two different kinds of business bankruptcy: Chapter 7 and Chapter 11...
- How to File for Bankruptcy - Federal law generally allows for two different kinds of business bankruptcy: Chapter 7 and Chapter 11...
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