Exchange Currency

best-interests-of-creditors test

A type of requirement in a Chapter 13 bankruptcy that states that unsecured creditors can receive at least as much as they would have in a Chapter 7 bankruptcy. While a Chapter 13 bankruptcy allows the bankrupt individual or company to continue their operations as long as they submit a debt repayment plan of between three and five years, a Chapter 7 bankruptcy is the complete liquidation of assets.

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