chapter 7

British  

noun

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

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Etymology

Origin of chapter 7

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

Example Sentences

Charles Dale, a lawyer for one of the company’s inventory lenders, said in court earlier this week that First Brands marks the rare bankruptcy case where stakeholders would be better off if its assets were liquidated under chapter 7.

From The Wall Street Journal

Court records show Buzzard has faced financial instability in recent years, including a Chapter 7 bankruptcy filing and multiple civil collections cases.

From Los Angeles Times

In September, subprime auto lender Tricolor filed for Chapter 7 bankruptcy protection, sending shock waves through the credit markets.

From Barron's

Dallas-based Tricolor Holdings filed for Chapter 7 bankruptcy protection in September, days after abruptly closing its 65 lots across six states.

From Barron's

Federal court records show that Buzzard filed for Chapter 7 bankruptcy in 2017.

From Los Angeles Times