Chapter 7
noun[U]
ukusLAW,FINANCE
apartof the USlawdealingwithbankruptcyin which apersonor company'spropertymay be taken by acourtandsoldinordertopaybackdebtsto thecreditors(= thepeoplewho areowedmoney):
TheyfiledforChapter7bankruptcy.
AChapter7bankruptcycasedoes notinvolvefilingaplanofrepayment, as is thecasewithChapter13.