Chapter 7 Bankruptcy can be filed by an individual, partnership, corporation or business entity. This type of Bankruptcy allows you (also known as the “debtor”) to liquidate your assets; meaning all assets, except those which are exempt, are sold and the proceeds are systematically distributed to creditors to satisfy all or a portion of the debt. In exchange, all unsecured debt is eliminated and the debtor is no longer responsible for paying off those debts.
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