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For reference: that point would be right before you get to raise the banner/sword of valour on top of the citadel, prior to fighting you know who to capture Drezen.
Your alignment will indeed be reset if you use Toybox, then you pick a new one. This should not affect quests, which is good because you can move on, but bad because your choices from earlier do stick. So if e.g. you picked Lann instead of Wenduag in Ch1, you are stuck with him. Unless you are feeling really adventurous with Toybox - I would not recommend that.
PS: If you had any specific options due to race, you keep the results but future quests might not continue (e.g you get the Thiefling ring from that quest, but are no longer a Tiefling)