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Protection from creditors granted to individuals or companies who legally file for bankruptcy, providing for liquidation of certain assets to pay debts.
- ‘Under Chapter 7, a trustee is appointed by the court to liquidate a debtor's assets.’
- ‘Individuals who file under Chapter 7 now will still be able to use the old rules, which is why there's been a rush to the courthouse.’
- ‘They hired a bankruptcy lawyer and filed for Chapter 7, freeing them from debt but eviscerating their credit for seven to ten years.’
- ‘On Monday, he had decided to file for Chapter 7 at the end of the week.’
- ‘Most select Chapter 7, the version that allows them to sell assets to pay off creditors.’
With allusion to Chapter 7 of the US bankruptcy code.
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