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bankruptcy module 2 chapter 7 liquidation the decision to file a personal or business bankruptcy is one of the most difficult decisions that an individual family or business can make people file bankruptcy for all sorts of reasons for medical disasters to business failures to being victimized by scams to simple mishandling of credit cards and other debt whatever the reason it hurts people when they realize that they have come to the point where they must ask the government for help in putting their financial lives back together but the bankruptcy laws in particularly Chapter seven are set up to help people in this sort of distress used appropriately Chapter seven can be a new beginning for a person family or business chapter 7 allows for the liquidation of the debtors personal or corporate financial obligations liquidation means the sale of the debtors assets and the distribution of the proceeds to the creditors liquidation is available under Chapter 7 regardless of the amount of the d