Yes, a business can file a chapter 7 bankruptcy, however, it will not achieve the same result as an individual or joint debtor filing a chapter 7. Most people seeking debt relief will file a chapter 7 bankruptcy, and if the debtor has no assets above the exemption limit, all allowable debts would be discharged, meaning the debtor would no longer have any liability to those credtiors. However, if a business files a chapter 7 bankruptcy, it will have to cease operating, and any assets will be distributed to creditors in the correct order. It is not possible for a company to obtain a chapter 7 discharge and continue operating as a business going forward.
http://www.westmontattorneys.com/Bankruptcy/
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