Chapter 7 bankruptcy

Definition of "Chapter 7 bankruptcy"
  1. 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
How to use "Chapter 7 bankruptcy" in a sentence
  1. Danielle had to file for Chapter 7 bankruptcy to resolve her overwhelming debt situation.
  2. The company had no choice but to go through Chapter 7 bankruptcy and liquidate its assets to pay off creditors.
  3. Filing for Chapter 7 bankruptcy can be a hard decision, as it leads to the sale of nonexempt assets to reimburse creditors.

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