Chapter 7

/ˈtʃæptər sɛvən/

Definitions

  1. (n.) A chapter of the U.S. Bankruptcy Code governing liquidation bankruptcy for individuals and businesses.
    She filed for relief under Chapter 7 to discharge most of her debts.

Commentary

Chapter 7 specifically refers to liquidation bankruptcy and differs substantially from reorganization bankruptcies such as Chapters 11 and 13.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

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