What is CHAPTER 7?

Section of US bankruptcy code that specifies a court-appointed trustee or receiver to collect and liquidate the debtor’s property to satisfy the creditors’ claims. Either the debtor or creditor may petition a court to appoint a trustee.

More On This Topic



Link to This Definition
Did you find this definition of CHAPTER 7 helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary