Reorganization is covered by a Chapter 7 bankruptcy.

Name: Reorganization is covered by a Chapter 7 bankruptcy.
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Reorganization is not covered by a Chapter 7 bankruptcy. Chapter 7 bankruptcy is also known as liquidation bankruptcy, where the debtor's assets are sold to pay off the creditors. Reorganization is covered by Chapter 11 bankruptcy, where the debtor reorganizes their finances while still operating their business, with a court-approved plan to repay their creditors over time.

Reorganization Is Covered by a Chapter 7 Bankruptcy