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Once the trustee is empowered, property of the estate is collected
for distribution to creditors. In most cases, the trustee declares
Chapter 7 administrations as no asset cases. However, in a few
individual cases and large corporate Chapter 7 cases, the trustee must
assimilate all assets. The disposition of property in Chapter 7
bankruptcy is governed by statute, and includes liquidation to cash,
transfer of specific property in lieu of payment, and even abandonment.
Most often, abandonment is preferred when the cost of seizure and
distribution exceeds reasonable market value.
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