Frequently Asked Questions About Business Bankruptcy In New Jersey

What are the different types of bankruptcy available for businesses in New Jersey?

In New Jersey, small and mid-sized businesses have several options when it comes to filing for bankruptcy, but Chapter 7 is the most common. Attorney Pinto has helped countless struggling business owners file for Chapter 7 bankruptcy.

Also known as liquidation bankruptcy, Chapter 7 involves selling the business’s assets to pay off debts. It’s suitable for businesses that cannot continue operations and are unlikely to become profitable again.

How does filing for bankruptcy affect a company’s day-to-day operations in New Jersey?

Filing for bankruptcy can have a significant impact on a company’s daily operations. In Chapter 7 cases, the business typically ceases operations as assets are liquidated. If filing for Chapter 7, you should discuss any final plans for your business operations with your attorney and the appointed trustee.

What role does the bankruptcy trustee play in business bankruptcy cases in New Jersey?

In New Jersey, a bankruptcy trustee is appointed to oversee the bankruptcy process. They play a crucial role in ensuring that the bankruptcy process is fair and that creditors receive what they are entitled to under the law.

In a Chapter 7 case, the trustee is responsible for liquidating the business’s assets and distributing the proceeds to creditors.

How are business assets handled during bankruptcy proceedings in New Jersey?

During bankruptcy proceedings, business assets are evaluated and handled based on the type of bankruptcy filed. In Chapter 7 cases, assets are under the trustee’s control and will be liquidated, meaning they are sold off to pay creditors.

Other types of bankruptcy focus on restructuring debt and creating a plan that allows the business to pay creditors over time while keeping its assets intact as much as possible.

What are the long-term implications of filing for business bankruptcy in New Jersey?

Filing Chapter 7 allows business owners to resolve financial and legal obligations that were preventing them from closing down their businesses. Depending on the business type and other factors, a business owner may be personally liable for certain debts, which they should discuss with their attorney.

Long-term, a business bankruptcy may affect the owner’s credit score (depending on the business structure) and their ability to obtain financing for future business ventures.

Discuss Your Options With A Bankruptcy Lawyer Today

Is your business struggling with overwhelming debt? The Law Offices of Darin D. Pinto, P.C., can help. To schedule an initial consultation about your legal options, contact the firm online or call 908-913-6168.