Chapter 7
Noun
Meaning
Chapter 7 (uncountable)
(US, finance, law) A type of bankruptcy code that governs the process of liquidation under the bankruptcy laws of the United States, conferring protection from creditors.
Examples
Chapter 7 asset liquidation is more appropriate in the schools’ situation because they are permanently closed and need to repay large debts.
Just like Walt Disney who filed for Chapter 7 twice, before his Disney theme parks and entertainment business became successful, clients decided to start life again with no debts, the proverbial fresh start.
Of course, not everyone will qualify for Chapter 7. Qualification for Chapter 7 depends on many factors.