When the company file chapter 7 is when the company will closed there doors,(TO MUCH DEBT) and every investor will loose there money. Now if they file fo chapter 11, is diferent, they still can trade but they must have a plan of reorganitazion and been approved, sometimes the stock holders will get there money back, But after the bond holders and the last creditors get there money back. I hope that your Lawyer not is the brother or relative of your Broker, Because if they related you are in big trouble