Bankruptcy Chapter 7
Bankruptcy Chapter 7 is a type of bankruptcy proceeding outlined in the Bankruptcy Code. More specifically, 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. Use the proceeds from the sale to repay creditors. Then, repay creditors in order of seniority.
Chapter 7 bankruptcy is the most common type of bankruptcy. Furthermore, Chapter 7 bankruptcy is often filed for by individuals.
If you’re in a Chapter 7 bankruptcy, then it’s time to look at how you could have prevented it and how you can avoid it again. Click here download the Top 10 Destroyers of Value.
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