chapter 7

noun

1. the statute regarding liquidation proceedings that empowers a court to appoint a trustee to operate a failing business to prevent further loss

Word History and Origins

Origin of chapter 7¹

C20: from chapter 7 of the Bankruptcy Reform Act (1978)

Example Sentences

AllHere is now in Chapter 7 bankruptcy, its employees have been laid off, and the company is under the control of a court-appointed bankruptcy trustee, according to the U.S. attorney’s office.

From Los Angeles Times

That was important to Fisker, the National Highway Traffic Safety Administration and car owners, who filed objections to converting the bankruptcy to Chapter 7, noting the startup’s only vehicle — a premium SUV called the Ocean — has several open recalls for faulty door handles, loss of power and other problems.

From Los Angeles Times

The settlement came after discussions among Fisker and its secured and unsecured creditors following a dispute over whether to convert the case to a Chapter 7 liquidation run by a trustee.

From Los Angeles Times

The families who sued Mr. Jones in Connecticut and Texas agreed with the judge’s ruling that Mr. Jones’s personal assets should be liquidated, under Chapter 7 of the bankruptcy code, and the proceeds from their sale divided among them.

From New York Times

Synapse’s creditors have been pushing in court to convert the bankruptcy to Chapter 7, which would liquidate the company.

From Seattle Times