Silicon Valley Business School

Bankruptcy: Chapter 7 Bankruptcy & Liquidation
Free Extracts from the Bankruptcy & Cash Crisis Management Course
Below you are free to explore extracts of the learning materials included in this course. If you're interested in educating yourself on these topics, we recommend that you review all these materials. If you're looking for a credential, please take a look at the certificate version of this course which will test your understanding of the materials and track your progress through the course until you have completed it and earned your certificate.

  • Video ~ Chapter 7: Bankruptcy Liquidation
Video explains Chapter 7 bankruptcy and liquidations.

Information on who qualifies for Chapter 7 bankruptcy, how debt is addressed in a Chapter 7 filing, and an overview of the rules covering this type of bankruptcy.

An overview of the early course of a typical Chapter 7 bankruptcy case.

A list of pros and cons to consider when deciding whether Chapter 7 bankruptcy is the best option.

This article outlines some of the common types of bankruptcy exemptions that may be available in a typical Chapter 7 filing.

Chapter 7 Trustees (also known as panel trustees) are not government employees. They are private citizens appointed and supervised by the Office of the U.S. Trustee (a division of the U.S. Department of Justice) to administer bankruptcy cases under chapter 7 of the U.S. Bankruptcy Code.

All asset sales by a Chapter 7 trustee are essentially an auction. The trustee has to provide notice to the creditors and gain approval from the court. A bidder cannot buy without the trustee going through the notice and auction process (inviting bids from others, but the first bidder can be a stalking horse bidder and negotiate a break-up fee.

A purchaser may not agree to purchase the assets if the purchase is not entirely “free and clear” of all liens, liabilities and encumbrances to clear title. While it is clear that Section 363(f) extinguishes all liens against the property, many courts have held that Section 363(f) also extinguishes all claims against the purchaser of the assets.

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