Chapter 7 is a liquidation process. Its role is different for a person seeking a fresh start and for a company winding down. AlignX Law helps evaluate those differences before a filing decision is made.
For individuals
Business debt may follow an owner through personal guarantees, contractual obligations, or litigation. We review income, assets, exemptions, debt types, and prior cases to assess whether Chapter 7 fits. Eligibility, what happens to particular assets, and which debts may be discharged require individual analysis.
For a business
A company’s Chapter 7 case generally places liquidation with a bankruptcy trustee. It is not an operating reorganization, and corporations and partnerships do not receive a Chapter 7 discharge. We discuss the effect on operations and the owner’s separate obligations, alongside other wind-down options.
What the assessment covers
We review the financial records and creditor picture, discuss disclosure obligations and asset issues, and explain the filing and trustee process. For an individual, we also evaluate business versus consumer debt and the implications for eligibility. The decision should be grounded in the whole picture rather than a single debt or collection notice.
Prepare for a useful conversation
Gather a list of assets and debts, tax returns, recent bank statements, loan and guarantee documents, and any collection papers. We use those records to identify questions that need answers before committing to a path.