Choosing what area of law to specialize in is often a difficult decision to make for law students. But for those leaning toward specializing in bankruptcy law, early preparation and understanding of what the practice entails is key to what could prove a promising career in that field.
Let's face facts - most aspiring lawyers don't grow up dreaming about arguing on behalf of reorganization plans in Bankruptcy Court. Lots of folks go to law school thanks to the passion of such mythic (albeit fictional) lawyers as Atticus Finch from "To Kill A Mockingbird." They go to law school because they believe in passion and justice and all that is good about America.
Chapter 7 proceedings are the mirror image of Chapter 11 proceedings: But instead of attempting to reorganize and continue operations, the Chapter 7 debtor shuts down and liquidates all assets. Appropriately, Chapter 7 corporate debtors do not operate as debtors-in-possession; instead, the Office of the U.S. Trustee appoints a Chapter 7 Trustee to "wind-down" the business - liquidating its assets and distributing the proceeds to creditors.