A court-supervised procedure in which a trustee sells the debtor's nonexempt assets and distributes the proceeds to creditors in accordance with the provisions of the Bankruptcy Code is called:

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Liquidation refers to the process where a trustee oversees the sale of a debtor's nonexempt assets to pay off creditors, as outlined in the Bankruptcy Code. This is typically associated with Chapter 7 bankruptcy.

A Court-Supervised Procedure in Which a Trustee Sells the Debtor's