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Insolvent
The state of being unable to pay debts owed, often leading to legal proceedings for liquidation or restructuring.
Chapter 7 Bankruptcy
A legal process under U.S. bankruptcy law for liquidating a debtor's assets to pay off creditors.
Discharge
A written federal court order signed by a bankruptcy judge which states that the debtor is immune from creditor actions to collect debt; i.e., a release from liability.
Debt
An obligation owed by one party to another, typically involving borrowed money that must be repaid with interest.
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