Operating a business is difficult. Even if you have a novel idea and find a niche in the marketplace, factors beyond your control might cause your company to fall into serious debt. Not only could heavy debt threaten the future of your business, but your family might also feel the effects of this predicament.
Our New Jersey business bankruptcy lawyers understand how you feel and want to guide you through a legal solution to your company’s problems. In many situations, the solution involves filing for bankruptcy in a federal court. However, it might also be possible to renegotiate outstanding loans with your lender or come to another form of agreement that allows your company to remain in operation and your family in a secure financial place. The experienced, skilled, and dedicated bankruptcy attorneys from Gillman, Bruton & Capone are here to guide you through life’s legal challenges.
Businesses fall into debt for many reasons. In fact, it is common for some businesses to carry a significant level of debt even while making a profit. It is when profits are no longer able to pay off the interests on debts that bankruptcy may be the best option.
There are three primary forms of bankruptcy that are available for business owners, the most common of which is Chapter 7. A Chapter 7 business bankruptcy will see the discharge of debt at the end of the process and the business ceasing to function. To pay off creditors, the law says that the company must liquidate its assets. The benefit of a bankruptcy declaration is that it effectively closes the business and effectuates an orderly liquidation of business assets, thereby allowing the owners to pursue new opportunities.
Another option is Chapter 13 business bankruptcy, which is only available when a business is a sole proprietorship. This is because the finances of the company are tied to those of the individual or family that operates the business. Under a Chapter 13 plan, the business will remain in operation, but in the meantime, the net profits of the company will be paid to creditors in a payment plan. Completing the terms of the payment plan can result in the discharge of any remaining debt.
Finally, companies can pursue bankruptcy protection through a Chapter 11 filing, which results in a reorganization of the company under court supervision. This may include closing locations, downsizing staff, and the appointment of a new board of directors. A New Jersey business bankruptcy attorney could help you choose the plan that best fits your needs and current situation.
While bankruptcy is a powerful tool for businesses in financial trouble, it comes with harsh consequences, like potentially requiring the sale of assets or the complete restructuring of a business. As a result, a New Jersey business bankruptcy attorney works with companies to explore potential alternatives.
One option may involve negotiating a modification of loans or mortgages in order to receive a better interest rate or reorganization plan. This could free up the cash needed to pay other loans. It might also be possible to formulate a downsizing plan that could result in a quick influx of assets, potentially allowing for the payment of debts that avoids the complications of bankruptcy. In short, we understand the impact that heavy debt can have on a company and will be in constant communication to help you to move forward in the way that makes the most sense.
If your company or business is facing overwhelming debt, every day can seem like a struggle. Even if you are currently turning a profit, it might not be enough to pay interest on a loan or keep creditors satisfied. The thought of losing a business or even the family home is terrifying, and you need a concrete solution moving forward.
A New Jersey business bankruptcy lawyer from Gillman, Bruton & Capone is dedicated to helping you find this solution and putting a plan into effect. If this includes bankruptcy, we can take every necessary step to initiate a case in court, submit the necessary documents, and see the case through to the end. With more than 25 years of experience, we can work to find a solution that keeps you in the most stable position at the end of it.
Justin Gillman was direct, honest and quite knowledgeable. His staff was always polite and helpful. Although the process of going bankrupt was something I felt would be painful and demeaning, Justin made the process quite the opposite. I could have gone to another Attorney but...
We would like to thank you and your staff in handling our case. The professionalism and smooth transaction exhibited by you and your firm made it easier on the hardship we were experiencing. You made it possible for our lives to go on and we’re...
My husband and I have been clients of Justin for approximately 9 years. He has always given us the best possible advice, took time to explain everything in a way that was clearly understandable to non professionals and never, never failed to return my calls...
The Best! Marc is my bankruptcy and real estate attorney. Has helped my family through a lot of tough times. His competence and integrity are unmatched. Have recommended several people to him.