Bergen County Chapter 11 Bankruptcy Attorney
Chapter 11 Bankruptcy Process in New Jersey
Owning a business is a tough and complicated process. Often, a business fails and closes its doors. Some, fortunately, are able to be successful, making a profit, gaining employees, and more. In some cases, a successful business struggles to make ends meet. Though the business should be profitable, that income is spent on trying to keep up with bills and debts. Though some businesses may need to close and file for Chapter 7 bankruptcy, others are worth more than the combined value of assets. A Chapter 11 business bankruptcy petition may be the solution that allows a business to continue operating while restructuring debt. If successful, a business may be able to keep the doors open, employees enrolled, and, with hard work, become a profitable entity in the future. If you need quality legal support through the process of Chapter 11 bankruptcy, contact The Radol Law Firm for a consultation.
Get Thorough Legal Advice Before Choosing Bankruptcy
You may believe your financial situation and problems are too serious from which to recover without filing for bankruptcy. The Radol Law Firm provides clients with a complete understanding of both their legal and financial options before choosing a strategy to follow. Chapter 11 bankruptcy, sometimes called debt restructuring bankruptcy, may not be the best option in your specific circumstances. Our firm may be able to help you negotiate a debt restructuring plan with your creditors without the formality of a repayment plan supervised by the bankruptcy court. Under other factors, a business owner may have to consider filing for Chapter 7 bankruptcy, liquidating assets and closing the business’s doors.
The Process of Chapter 11 Bankruptcy
The first step of Chapter 11 bankruptcy is to file the Chapter 11 petition. Once complete, an “automatic stay” will go into effect, barring creditors from pursuing your debt. The petition will include a financial statement, a list of liabilities and assets, and outstanding contracts or leases.
The next step is to create a reorganization plan. You have 120 days to create a plan that usually consists of restructuring accomplished by reducing overhead through the cancellation of executory contracts or leases. With a successful restructuring plan, any profit generated is used to pay off debt.
The business must get this restructuring plan approved by the bankruptcy court and creditors. If opposed by the creditors, they can provide their own plan as well. Though creditors may oppose the debtor’s plan and a debtor opposes the creditors’ plan, the bankruptcy court has the final say and will act in the best interests of the company’s future.
The last step is the bankruptcy hearing. At this point, a plan will be approved or a decision will be made to convert the case to Chapter 7 bankruptcy, liquidating the assets and closing the business.
Contact An Experienced Business Bankruptcy Lawyer
The Radol Law Firm is honored to be a legal resource to businesses across New Jersey. Our firm has over 30 years of experience helping businesses develop a restructuring plan that will satisfy creditors and the court. If possible, our firm will work to avoid bankruptcy altogether. We can offer strategic options to help resolve financial crises that consider both the legal and business aspects of the situation. If you need quality legal support, contact The Radol Law Firm for a consultation.