It is important to understand that there are two different kinds of Chapter 7 Bankruptcy cases which may assist business owners:
In our experience representing Small Business owners since 1981, we have found that much of the debt which drives them to seek the assistance of an experienced business bankruptcy attorney is actually debt which they owe personally and not “business debt” – meaning debt owed by the corporation or . In such cases, a Chapter 7 or Chapter 13 personal bankruptcy may be available to address the debt obligations and revive the businesses chances to succeed. Or, if the harsh realities of today’s economy has forced a small business to closed, a Chapter 7 or Chapter 13 personal bankruptcy may be required to allow the business owner to have a fresh start when faced with significant debt.
Business entities – meaning the corporation or as opposed to the individual owner – are also entitled to file a Chapter 7 bankruptcy. We find that this is one of the most misunderstood forms of bankruptcy as it is often confused with a personal Chapter 7 Bankruptcy filed by the individual owner. A Chapter 7 Business Bankruptcy is one option available to a business whose debts may force it to close.
When we are retained to represent a Small Business and/or its owners, we review all options available to address the debt issues. For Small Businesses which have temporary debt issues which can be solved through a reorganization, we consider a Chapter 11 Bankruptcy for the business or other options to restructure debt and allow the business to survive. Our goal is to provide our Small Business clients with all of their options when faced with debt issues.
Some things to consider about a Chapter 7 Business Bankruptcy in New Jersey:
DON’T DELAY: The single best advice that we can provide any Small Business and its owner(s) is to immediately consult with an attorney experienced in small business debt issues to know your rights, options, and to be able to make the best decisions. Your creditors have attorneys. Small business owners need one too.
The information set forth above is not legal advice which can be provided to you only after a full review and evaluation by an attorney of your particular circumstances and the remedies which may be available.