Question

the sale of a debtors nonexempt property and the distribution of the proceeds to creditors
liquidation
collateral
foreclosure
a type of bankruptcy that requires individuals unable to pay their debts to sell his or her assets to pay creditors
chapter 7
chapter 11
chapter 2
collateral

Explanation:

1. Liquidation involves selling a debtor's non - exempt property and distributing the proceeds to creditors. Collateral is an asset pledged for a loan. Foreclosure is the process of taking back property due to non - payment (usually for mortgages).
2. Chapter 7 bankruptcy is for individuals unable to pay debts, requiring asset sale to pay creditors. Chapter 11 is for businesses to reorganize. There is no Chapter 2 in this context. Collateral is an asset, not a bankruptcy type.

Answer:

1. A. liquidation
2. A. Chapter 7