Bankruptcy: Chapter 7 Liquidations

Phillip L Kunkel and Jeffery A. Peterson ( June, 2015 )

Summary

A Chapter 7 bankruptcy is a liquidation proceeding. It is the most logical choice for a farmer who cannot continue to farm and who must terminate his or her farming operation. Under Chapter 7, a trustee is appointed to liquidate all nonexempt assets and distribute the proceeds to creditors. Secured creditors will receive either the value of their collateral or the collateral itself.

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University of Minnesota Extension

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University of Minnesota

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Written Material