See Also:
Chapter 11 Bankruptcy
Chapter 12 Bankruptcy
Chapter 13 Bankruptcy
Bankruptcy Costs
Bankruptcy Courts
Bankruptcy Code
Bankruptcy Information
Bankruptcy Chapter 7
Chapter 7 bankruptcy is a type of bankruptcy proceeding outlined in the
Bankruptcy Code. Chapter 7 is a liquidation procedure.
When a financially distressed entity files for chapter 7 bankruptcy, the entity ceases operations and a court-appointed trustee sells the entity’s assets. The proceeds from the sale are used to repay creditors. Creditors are repaid in order of seniority.
Chapter 7 bankruptcy is the most common type of bankruptcy. Chapter 7 bankruptcy is often filed for by individuals.