Chapter 7

Chapter of the Code that provides for a trustee to take control of the debtor’s property, to sell or dispose of it, and to distribute the proceeds to creditors in accordance with the distribution provisions of the Code. The association of the concept of liquidation exclusively with Chapter 7 is misleading because under current Chapter 11 practice many plans actually implement a liquidation instead of a reorganization.

See also Chapter 7 Trustee, Liquidation.

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