New Jersey Debt Relief Blog

If there is a certain aspect of a business that isn't performing as well as others, many business owners choose to invest more time and money into it to improve its performance. This isn't always the best strategy, however, as the increased concentration may put other, more successful aspects in jeopardy. In this case, a business divestiture is a group of strategies that allows you to rid yourself of underwhelming assets in an attempt to make the rest of your business stronger. The Balance explains different types of business divestitures and how they work. 

Filing for bankruptcy is a common type of business divestiture. Certain types of bankruptcy entail the liquidation of assets to settle outstanding debt to creditors. While not all types of bankruptcy involve liquidation, Chapter 7 proceedings would require you sell off things like property or equipment. Although Chapter 11 aims to reorganize debt, in some cases it also involves liquidation. 

There are many reasons why filing for bankruptcy can be a difficult decision to make, whether one is worried about various legal stressors or the different ways in which a bankruptcy filing may affect their lives. However, some people push off the bankruptcy process (or avoid it altogether) because they are concerned about the stigma surrounding bankruptcy. However, you should not allow these concerns to get in the way of what is best for you, financially and in other aspects of your life. Filing for bankruptcy has helped many people who were buried in debt and unable to have hope with respect to their financial future.

First of all, many people are surprised to find out just how common bankruptcy is. Not only do many businesses file for bankruptcy, but personal bankruptcy occurs quite often as well. There are a lot of reasons why people may need to file for bankruptcy, whether they lost their job unexpectedly or their credit card debt ballooned out of control as a result of interest and unexpected life challenges, such as a health crisis. Some people feel ashamed of their financial state, but financial problems have become increasingly prevalent in recent years due to wage stagnation, the recession and a host of other factors.

There are a lot of different factors when it comes to filing for bankruptcy, from the financial benefits of eliminating debt to exploring some of the different types of bankruptcy as well as the benefits of each option. For some people, however, the bankruptcy process can be challenging, especially if someone is dealing with other hardships at the same time. For example, someone who is dealing with depression may have a particularly difficult time while working through their bankruptcy, and it is imperative to take the right approach to bankruptcy if you are in this position.

People become depressed for various reasons, whether they recently went through a difficult divorce or they have depression because of a long-term injury or a traumatic experience they went through. Sometimes, depression lasts for many years and is an ongoing challenge, while other people may struggle with depression temporarily. If you are depressed, it is vital to prevent negative feelings and some of the challenges associated with depression (such as a lack of energy) from getting in the way of your bankruptcy, which could make your life more difficult.

At William H. Oliver, Jr. & Associates in New Jersey, our legal team understands that the language of Chapter 11 bankruptcy is unique. For example, you may wonder what it means to be a debtor in possession.

If you are the debtor who is filing, you will probably be filling this role, so it is important to understand it.