The popular name for a Chapter 7 bankruptcy in which a bankrupt firm's assets are sold by the bankruptcy trustee and the proceeds used to pay the firm's debts is _____.

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Liquidation is the process in which a bankrupt firm's assets are sold off to pay its debts. Chapter 7 bankruptcy is commonly referred to as liquidation bankruptcy. Amortization refers to the gradual repayment of a debt over time. Reorganization bankruptcy, also known as Chapter 11 bankruptcy, involves a reorganization of the company's debts and assets and is not necessarily a liquidation. Depreciation is a term used to describe the decrease in value of an asset over time.

The Popular Name for a Chapter 7 Bankruptcy in Which