Chicago Chapter 7 Small Business Bankruptcy Attorney

Eric Zelazny is a Chicago bankruptcy attorney with a CPA background — bringing over 30 years of experience helping Illinois small business owners use Chapter 7 to close cleanly, protect their personal assets, and move forward without the weight of unresolvable business obligations.

Sometimes closing the business is the right decision. Chapter 7 helps you do it right.

Chapter 7 small business bankruptcy in Illinois provides a legal, court-supervised process to wind down a business and discharge its obligations. For corporations, LLCs, and partnerships, Chapter 7 requires the business to cease operations — a court-appointed trustee then liquidates assets and distributes proceeds to creditors, with most small business creditors receiving little to nothing. For sole proprietors, a personal Chapter 7 filing may discharge business obligations while allowing continued operation. Illinois exemptions — including homestead and retirement account protections — play a critical role in determining what the business owner keeps personally throughout the process.

Not every struggling business can — or should — be saved. For many small business owners, the most empowering decision they can make is to close the business on their own terms, resolve outstanding obligations through a legal process, and protect their personal financial future in the process.

Chapter 7 small business bankruptcy is designed exactly for this. It provides a court-supervised, legally structured path to wind down a business — often with little to no obligation paid back to creditors — and delivers the closure owners need to move on.

The risk is in waiting too long. The longer collection action is allowed to build, the more your personal assets can be pulled into the equation.

What a Strategy Actually Looks Like

An Illinois sole proprietor running a landscaping business accumulated $280,000 in business obligations including an EIDL loan with a personal guarantee. Rather than closing without a plan, he engaged Eric to evaluate his options. Because he operated as a sole proprietor, a personal Chapter 7 filing was available — discharging the business obligations including the EIDL personal guarantee while allowing him to continue operating under a fresh structure. The entire process was completed in under five months.

Chapter 7 strategy starts long before the filing

Most people think of Chapter 7 as a single event — the filing. In reality, the decisions made in the weeks and months before a filing have an enormous impact on the outcome, especially when it comes to protecting the business owner personally.

Eric Zelazny is both a licensed Attorney and a Certified Public Accountant (CPA) — which means he evaluates your situation from a legal and financial standpoint simultaneously. He identifies exposure points others miss, advises on pre-filing strategy, and ensures the process protects you as much as the law allows.

What Chapter 7 Small Business Bankruptcy Looks Like in Practice

Corporate Chapter 7 — Closing the Business

When a corporation, LLC, or partnership files Chapter 7, the business ceases operations and a court-appointed trustee liquidates the business assets to pay creditors. In most small business cases, there is little to distribute — meaning creditors receive little to nothing and the business owner is released from corporate obligations. Eric manages the entire process and keeps you informed at every step.

Sole Proprietor Chapter 7 — Keeping the Business Running

If you operate as a sole proprietor, the rules are different. A personal Chapter 7 filing may allow you to eliminate business obligations while continuing to operate — because the business and the individual are legally the same entity. Eric evaluates whether this path is available and advantageous for your situation.

Personal Asset Protection Throughout the Process

Regardless of your business structure, protecting your personal assets during a Chapter 7 filing is a top priority. Eric works to identify applicable Illinois exemptions — including homestead protections — and structures the filing to maximize what you keep personally.

SBA & EIDL Obligations in Chapter 7

For small business owners with SBA or EIDL loans, Chapter 7 introduces specific considerations around personal guarantees and the SBA's collection authority. Eric has extensive experience navigating these situations and builds a strategy that addresses your SBA or EIDL exposure directly.

Closing a Business Shouldn't Mean Losing Everything

Eric Zelazny has helped hundreds of Illinois small business owners close their businesses without losing their homes, their retirement accounts, or their financial footing. His combined background as an Attorney and CPA means he approaches every Chapter 7 case with both the legal tools and the financial perspective needed to get the best possible outcome.

Schedule YOUR FREE IN-PERSON CONSULTATION

Contact us today to schedule your appointment.

Reviews From Our Clients

"I own a trucking company with big loans, back taxes, and messy records. Other lawyers kept turning me away. Eric didn’t flinch. He looked at everything, said, “Okay, here’s what we can do.” He helped me file the right kind of bankruptcy, got the creditors off my back, and made sure I didn’t lose my trucks. That was everything. I’m still in business today because of him."

"Nothing but the best- knowledge & service above and beyond , this is what you can expect if Eric is the attorney you hired. Experience, expertise and professionalism that he brings to the case given is definitely something that is a rare find these days. Eric is my attorney of choice for all legal needs in fields that his office covers."

"Eric is very professional and knowledgeable. The best thing about him, is that He is an accountant and a lawyer. Essentially once you hire him, all aspects of your case are being taken care off, from legal to financial side of things."

"Eric is so knowledgable and friendly. He gave us great advice to position our existing businesses and never made me feel rushed or that I was asking dumb questions. Making a consultation call with him is one of the best decisions I ever made and we will be using his services in the future."

"I recently had the privilege of hiring Eric Zelazny, and I must say that the experience was nothing short of exceptional. If you're in need of legal representation, look no further because Eric is truly an outstanding professional who deserves every accolade...I can’t recommend Eric enough.

"I had a consultation with Eric. He took his time and discussed every single aspect of the legal issue I was facing with me. During our consolation it was clear that Eric genuinely had my best interest in mind. His insight, thoughts and discussion helped us come to a conclusion that three other attorneys overlooked. I can not thank Eric enough. I am confident and proud to have him in my corner."

Not Sure if Chapter 7 Is Right for You? Let's Find Out Together

Every small business situation is different. A free, in-person consultation with Eric gives you a straight answer — whether Chapter 7 is the right path, what it would mean for you personally, and what your alternatives are if it isn’t.

After the free initial consultation, you will know if Chapter 7 Debt Liquidation is a good option for your business.