A Chapter 7, whether for the individual or a corporation, may be the best choice when:
the business has no future,
it has no substantial assets or qualities that cannot be reproduced, or
the debts are so overwhelming that restructuring them is not feasible.
Individuals can get a discharge of the dischargeable debts and a chance to start over. Corporations don’t get discharges, but a Chapter 7 can provide an orderly liquidation under the direction of the trustee and at no expense to the debtor. Creditors are assured that they will be paid to the extent of the assets available and the priority of their claim. Former management is assured that the assets that are available go (after the expenses of the Chapter 7) to pay taxes for which the individuals may be liable.