Chapter 7 is the single most common bankruptcy chapter filed in the United States. Chapter 7 refers to the chapter of the Bankruptcy Code which can be found in Title 11 of the United States Code. Chapter 7, commonly known as “liquidation bankruptcy”, involves the sale of a debtor’s non-exempt assets by a trustee assigned by the bankruptcy court to oversee the case. Any proceeds obtained by the bankruptcy trustee are then turned over to creditors.
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