If your New Jersey small business is struggling financially, you may wonder if filing for bankruptcy is a wise decision, or, more to the point, if filing for bankruptcy would jeopardize your personal assets. Intuit QuickBooks explores circumstances in which your assets may be at risk and what you can do to protect them in the event that your business defaults.
When a company is facing an uncertain financial future, they have a couple of options to consider in revitalizing their structure and recovering from the restraints of debt. Struggling companies in New Jersey may be able to develop a plan for consolidating their debt, renegotiate contracts with creditors to extend their payment period or file for bankruptcy to try and recover as many of their assets as possible.
Chapter 11 bankruptcy is reserved for businesses. It is a restructuring of debt. While all sizes of businesses can file under the chapter, things may be different for a small business than for a larger one. One of the important parts of Chapter 11, according to the U.S. Courts, is the creditors' committees. This committee is a group of the seven largest unsecured creditors. They investigate your business and finances and help to formulate the bankruptcy plan.
At William H. Oliver, Jr. & Associates, many of our bankruptcy clients are what you would call successful businesspeople. Their companies are growing and profitable. If you are new to the concept of declaring chapter 11 bankruptcy in New Jersey, you might think of it as the mark of a dying business — but that is rarely the case.
At William H. Oliver, Jr. & Associates in New Jersey, we know how difficult your life becomes when the business you own begins to fail because it has an overabundance of debt and insufficient profit with which to pay it. Often in these situations, filing for Chapter 11 bankruptcy may be your best strategy.
If you own or manage a business in New Jersey that is experiencing financial instability, you will no doubt want to carefully evaluate your options. Depending upon the reason for your situation you may choose to use the financial problems as a reason to close your business and pursue other options. You may also want to find a way to keep your business operating and get it back on healthy financial footing. In either situation, a bankruptcy may be able to help.