Chapter 7 bankruptcy is also known as

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Chapter 7 bankruptcy is commonly referred to as "straight bankruptcy" or "liquidation bankruptcy" because it involves the liquidation of assets in order to repay creditors. Reorganization (A) typically refers to Chapter 11 bankruptcy, while reaffirmation (B) is a legal process where a debtor agrees to repay a debt despite it being discharged in bankruptcy. Voluntary bankruptcy (C) simply means that the debtor initiated the bankruptcy proceedings on their own, as opposed to being forced into bankruptcy by creditors.

Chapter 7 Bankruptcy Is Also Known as