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Posted by / 08-Mar-2020 06:49

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The trustee sells or otherwise converts the property to cash and then pays creditors a dividend from the proceeds of the property sold.

The debtor receives a discharge for debts that remain unpaid after the trustee has liquidated the property.

A chapter 11 is designed to rehabilitate a debtor financially, which can involve property liquidation and many other, complex, programs designed to provide repayment to creditors.The case is closed after the trustee has determined all claims that must be paid and has gathered and sold all property.It could take several months, or even years, for a trustee to complete liquidation of a debtor’s property.Chapter 7 bankruptcy cases involve the sale of assets to provide a payment to creditors.A chapter 7 debtor must turns non–exempt property over to a trustee.

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