Business insolvency means that a business has more debts (more liabilities) than its assets. A business is distressed if it cannot generate enough revenue to cover its operating costs. If your business is insolvent, distressed, or both, you may be considering options for liquidation of your business. There are two (2) main business liquidation options [...]
Despite its stigma, a business struggling with legal or financial issues can reap the benefits of bankruptcy. Business bankruptcy can give a company the time and space it needs to regroup and create a plan of reorganization. Alternatively, a business can use that time and space to orderly liquidate its assets. In either instance, the [...]
Navigating insolvency and liquidation can be difficult. When a business is going “out of business”, it’s common that its owners have a range of types of debts to resolve, and an equally long list of known and unknown creditors. Negotiating all of these debts, with different creditors, while closing your business, all at the same [...]
Providing Notice That You’re Going Out of Business Closing a business with debts can be daunting. If you’ve decided that you want to, or need to, close your business, giving notice is a major step in the process. While it’s hard to break the news, it’s even harder to lose your business assets in the [...]
Operating a business is hard work. Keeping a business open for the long haul is even harder. According to the U.S. Bureau of Labor Statistics, about 20% of small businesses close within their 1st year of operations. Around 50% of small businesses close by their 5th year of operations. In the end, only 33% of [...]
Most people understand the concept of “bankruptcy,” but aren’t necessarily familiar with bankruptcy alternatives - especially with the concept of an assignment for the benefit of creditors (“ABC”). An ABC is a well-established New Jersey state law alternative to federal bankruptcy. This article will give you an understanding of why ABCs, as far as bankruptcy [...]
When most people think about the word “bankruptcy,” they’re thinking about filing Chapter 7 bankruptcy. It’s the simplest kind of bankruptcy. It is also the most common kind of bankruptcy. But Chapter 7 can also be the most risky kind of bankruptcy. Most people file Chapter 7 bankruptcy with the expectation that, because they don’t [...]
Bankruptcy is a big deal. It’s a powerful, complex and, for most people, a very confusing concept. Bankruptcy in New Jersey is especially complex in 2021 due to new laws and regulations related to the pandemic. We’ve created this guide to make it easier for you to understand the most important bankruptcy concepts, from a [...]
Failure to pay tolls, fines and penalties associated with an E-ZPass a/k/a/ EZPass account can quickly result in skyrocketing and compounding debts. The majority of EZPass debts are made up of fines and penalties associated with not paying the relatively small underlying toll. These EZPass debts may have resulted as a result of defective [...]
T he “automatic stay” in the Bankruptcy Code operates to stay collection actions, service of process, lien perfection, and judgment enforcement, upon the debtor’s filing of a bankruptcy petition. 11 U.S.C. §362(a). The automatic stay prevents creditors from repossessing cars or taking other actions with respect to their collateral. But what happens if a [...]
