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What is Chapter 7 bankruptcy

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the type of bankruptcy filed to liquidate assets in order to pay off debts. Businesses may file Chapter 7 as well as individuals. This type of bankruptcy is a total release of indebtedness, thus not requiring the debtor to pay back any of the monies discharged under the bankruptcy case. The hazzard to filing Chapter 7 bankruptcy however, is that a creditor may force the sale or liquidation of assets in order to satisfy judgments and debts.

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