Chapter 7


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Related to Chapter 7: Chapter 11

Chapter 7

In the United States, a type of bankruptcy where a person's or company's assets are required to be liquidated. The court appoints a trustee, who may or may not be a part of the company, to oversee the liquidation process. If a company files for chapter 7, it ceases operations. The company's creditors receive the proceeds from liquidation according to the system of absolute priority; that is, secured creditors are paid first, then if anything is left unsecured creditors are paid, then preferred stockholders, and finally common stockholders. A company files for chapter 7 proceedings when its management believes that reorganizing according to a court-mandated plan would not result in the company becoming profitable.

Chapter 7

A bankruptcy option in which a bankrupt firm is liquidated after the courts have determined that reorganization is not worthwhile. A trustee is charged with liquidating all assets and distributing the proceeds to satisfy claims in their order of priority. In Chapter 7 bankruptcies the creditors often receive a fraction of the value of their claims and the stockholders receive nothing.
References in periodicals archive ?
Chapter 7, "Practical Applications," contains a chart to fill in and analyze one's alignment.
Chapter 7, "Games and Explorations III: Monkeying Around with the Voice," is about a position or posture referred to as the "monkey" in which all the parts are in dynamic balance, thus being at a mechanical advantage to the singer.
Chapter 7, "Making the Piece Reliable," focuses on defining the task, the miserable beginning stages of learning a new piece, how we play games with ourselves while learning a new piece and so forth.
Chapter 7 allows a discharge of debts and a fresh start for debtors who cannot turn their finances around.
The primary goal of Chapter 7 is to provide debtors with a fresh start by discharging their debts.
Individuals may seek Chapter 7 relief every six full years.
Unless paid, government priority claims survive a Chapter 7 or a Chapter 13 bankruptcy.
Certain government priority tax claims survive either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.
Even though the circumstances listed are not elevated to government priority claims, they do survive a Chapter 7 bankruptcy.
Chapter 7, the previous choice by most individuals, requires the liquidation of assets and the payment of a trustee, which adds more costs to the debtors.
And if he was required to file in Chapter 7, Lehman said, he could "lose everything.
Chapter 7 filings, the law says, may be used by all debtors except railroads, banks and insurance companies.
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