Chapter 7 bankruptcy
- A consumer liquidation process where a trustee sells the debtor's nonexempt assets to pay off creditors, leading to the discharge of many, if not all, of the debtor's debts
- Danielle had to file for Chapter 7 bankruptcy to resolve her overwhelming debt situation.
- The company had no choice but to go through Chapter 7 bankruptcy and liquidate its assets to pay off creditors.
- Filing for Chapter 7 bankruptcy can be a hard decision, as it leads to the sale of nonexempt assets to reimburse creditors.