This bankruptcy chapter filing option liquidates the debtor's property to repay creditors and discharge the debts.

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Chapter 7 bankruptcy is also known as "liquidation bankruptcy" because it involves selling off a debtor's non-exempt assets to repay creditors. This option is best for individuals or businesses with minimal assets and little to no disposable income. Once the bankruptcy court distributes the proceeds from the sale of non-exempt assets to creditors, any remaining eligible debts are discharged, and the debtor is no longer responsible for them.

This Bankruptcy Chapter Filing Option Liquidates the Debtor's Property to Repay