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SpongebobFinance on Instagram: "The U.S. bankruptcy system includes several chapters tailored to different financial situations. Chapter 7, the most common, is liquidation—non-exempt assets are sold to pay creditors, and most remaining unsecured debts are discharged. Chapter 13 is a reorganization plan for individuals with steady income, allowing them to keep assets while repaying part of their debt over three to five years. Chapter 11 is primarily for businesses, offering a way to restructure o
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