Chapter 7

(noun)

In bankruptcy involves basic liquidation for businesses. Also known as straight bankruptcy, it is the simplest and quickest form of bankruptcy available.

Related Terms

  • Chapter 11
  • bankruptcy

Examples of Chapter 7 in the following topics:

  • Bankruptcy Considerations

    • In the U.S. firms that go bankrupt normally file for Chapter 7 or 11.
    • Chapter 7 involves basic liquidation for businesses.
    • Chapter 7 is the simplest and quickest form of bankruptcy available.
    • Chapter 11 involves rehabilitation or reorganization and is known as corporate bankruptcy.
  • What Happens in Bankruptcy

    • These trustees maintain and supervise a panel of private trustees for Chapter 7 bankruptcy cases.
    • Liquidation under a Chapter 7 filing is the most common form of bankruptcy.
    • Under Chapter 7, a trustee collects the non-exempt property of the debtor, sells it, and distributes the proceeds to the creditors.
    • Because each state allows for debtors to keep essential property, most Chapter 7 cases are "no asset" cases - meaning that there are not sufficient non-exempt assets to fund a distribution to creditors.
    • Individuals usually file Chapter 7 or Chapter 13.
  • Bankruptcy and Bond Value

    • When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11 of the Bankruptcy code.
    • In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors.
    • In Chapter 11, in most instances, the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.
    • As an example, after an accounting scandal and a chapter 11 bankruptcy at the giant telecommunications company Worldcom in 2004, its bondholders ended up being paid 35.7 cents on the dollar.
  • Chapter Questions

    • 7.
  • Chapter Questions

  • Chapter Questions

  • Chapter Questions

    • 7.
    • Draw a loanable funds market with an equilibrium interest rate of 7%.
    • Draw a loanable funds market with an equilibrium interest rate of 7%.
  • Chapter Questions

    • Russian has a 7% inflation rate while the United States has a 3%.
    • 7.
    • Malaysia experienced a strong GDP growth rate of 7% per year while the United States experienced 3%.
    • Domestic interest rate for Europe is id = 7% while the United States interest rate equals if = 5%.
    • If the spot exchange rate is S = 0.7 € / $1, estimate the approximate price of a forward contract due in six months.
  • Chapter Questions

  • Chapter Questions

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