Owning and operating a business is challenging. Almost every business must assume some debt to meet operating expenses and position itself for growth, but external factors can conspire to make the debt untenable.
Declaring bankruptcy can sometimes be the answer. If your business’s debt has become burdensome, contact one of our Toms River business bankruptcy lawyers. If we believe we can help, an experienced bankruptcy attorney will review your situation and help you determine whether bankruptcy is your best option.
Bankruptcy can allow a business owner to limit their losses and move forward with a clean slate. However, when an owner wants to try to preserve the business as a viable entity in its current form, the attorneys in our Toms River office can explore bankruptcy alternatives.
Renegotiating debt is sometimes possible. Obtaining a lower interest rate or longer repayment period can free up cash that a business owner can use to support ongoing operations. Temporary downsizing or restructuring may be a viable option to keep a business open until it regains profitability.
Our legal professionals will listen to you and find out your goals going forward. We will identify the pain points in your business operations and work to find solutions to alleviate them. We will always support our clients in looking for alternatives to bankruptcy.
When other options do not provide adequate relief, bankruptcy may be the best option. There are several forms of bankruptcy available to business owners in Toms River. The type of bankruptcy appropriate in a specific case depends on the structure of the business and whether the owner intends to keep it operating.
A Chapter 7 bankruptcy may be the right choice when you want to shut down your business in an organized fashion. A Chapter 7 bankruptcy filing provides immediate relief from debt collection efforts, and a trustee will be named to liquidate your business’s assets and distribute the proceeds to creditors.
Filing a Chapter 11 bankruptcy allows you to continue operating your business while you re-organize it to achieve profitability. A Chapter 11 bankruptcy requires you to submit a plan to restructure your business and pay your unsecured debt.
A trustee will oversee the business restructuring, and your creditors must agree to a repayment plan and can propose alternative repayment arrangements.
A Chapter 11 bankruptcy can be a cumbersome and expensive process. A Subchapter V filing is a more cost-effective and efficient option for corporations, limited liability companies, partnerships, or sole proprietorships. Among other advantages, a Subchapter V bankruptcy allows small businesses to re-organize without creditor approval of their repayment plan.
Congress sets the debt limit for a Subchapter V bankruptcy, and it changes periodically. The attorneys in our Toms River office can review your circumstances and determine whether you are eligible to file your business for bankruptcy under this Subchapter.
A Chapter 13 bankruptcy is a form of personal bankruptcy, but it is available to sole proprietors. A sole proprietor may be able to restructure their personal and business debt while continuing to run their business and protect important personal assets and tools of the trade.
Struggling with business debt can be overwhelming. The legal professionals at our firm understand how disheartening and stressful this situation can be – and we want to help in any way that we can.
If your business is weighed down with debt, reach out to us for a free case evaluation. We will review your current situation and can pass your case along to a Toms River business bankruptcy lawyer to find a solution appropriate for your future plans..
Gillman Capone Law Group
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