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"An introduction to chapter 7 of the Bankruptcy Code" [2019] ELECD 2086; in Lubben, Stephen (ed), "American Business Bankruptcy" (Edward Elgar Publishing, 2019) 80

Book Title: American Business Bankruptcy

Editor(s): Lubben, Stephen

Publisher: Edward Elgar Publishing

Section: Chapter 7

Section Title: An introduction to chapter 7 of the Bankruptcy Code

Number of pages: 3

Abstract/Description:

Chapter 7 bankruptcy is bankruptcy in the old-fashioned sense. Filing a petition results in appointment of a trustee, who liquidates the estate and distributes the proceeds to creditors. The trustee acts on behalf of all the creditors, ensuring that the costs of pursuing a general liquidation are diminished and that creditors with small stakes can benefit from collection efforts that might have been too expensive to consider otherwise. In addition, chapter 7 looms large in chapter 11, because much of the reorganization process is tested against the baseline of a hypothetical chapter 7. Chapter 7 also provides the endpoint for many failed chapter 11 cases.