Chapter 7 | Practical Law

Chapter 7 | Practical Law

Chapter 7

Chapter 7

Practical Law Glossary Item 9-385-0748 (Approx. 3 pages)

Glossary

Chapter 7

The chapter of the Bankruptcy Code dealing with orderly liquidation of all of a debtor's property. In a corporate Chapter 7 case, the proceeds are distributed to creditors without continuing the debtor's business. Unlike in a Chapter 11 bankruptcy, the debtor does not continue to operate the business. A Chapter 7 case trustee instead is appointed immediately on the filing of the case. The trustee is responsible for protecting the assets of the estate and ensuring continuity of the administration of the estate.