15/10/18 Liquidation

 

It is a type of bankruptcy relief in which a debtor turns all assets over to a bankruptcy trustee — a person appointed by the court to manage the debtor’s funds — so that the trustee sell the nonexempt assets and distribute the proceeds to creditors.

The process of liquidation under the bankruptcy laws of the United States is governed by Chapter 7 of the Title 11 of the United States Code (Bankruptcy Code). That is why liquidation proceedings may be often referred to simply as “Chapter 7”.