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Bankruptcy law provides for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts through the division of his assets among his creditors. An additional purpose of bankruptcy law is to allow certain debtors to free themselves of the financial obligations that they have accumulated even if their debts have not been paid in full.
There are two basic types of Bankruptcy proceedings. A filing under Chapter 7 is called liquidation which is the most common type of bankruptcy proceeding. It involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it and distributes the proceeds to the creditors...
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