I'm pretty sure his attorney suggested him do that

He might use chapter 7 to sheild the payment for the time being, 24 millions court judgement to Learning Annex, who supported him in the early stage of his career, got him started in the marketing, etc. According to the court paper, he has never paid the Learning Annex the share of profits. Most likely he will settle with Learning Annex with partial payment. Well, he will pay hefty tolls to the attorney.