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Chapter 7 Bankruptcy

 

 

Chapter 7 Bankruptcy Fact: Chapter 7 is referred to as Liquidation because your non-exempt assets are liquidated (converted to cash) to pay part of the debtor’s outstanding bills. If you’re like most people who file for Chapter 7 bankruptcy, though, most or all of your assets will be exempt. If that’s the case, there is no actual liquidation.

 

 

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