Chapter 7
noun [ U ]
ukus LAW, FINANCE
a part of the US law dealing with bankruptcy in which a person or company's property may be taken by a court and sold in order to pay back debts to the creditors (= the people who are owed money):
They filed for Chapter 7 bankruptcy.
A Chapter 7 bankruptcy case does not involve filing a plan of repayment, as is the case with Chapter 13.