Bankruptcy can often help business owners obtain a fresh financial start. Depending on your situation and financial goals, your best options are likely between Chapter 7, Chapter 11 (and Subchapter V), or Chapter 13.

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Chapter 7 Bankruptcy for Businesses

Chapter 7 bankruptcy can help you get out of unsecured debt, protect some of your assets, and immediately stop creditor harassment. It can also protect you from potential lawsuits, wage garnishments, and bank levies.

Chapter 7 bankruptcy may require the sale of your business. If you want to keep your business, then you should consider a Chapter 11 bankruptcy. Contact Middlebrooks Shapiro today for your free consultation to discuss your options.

Chapter 11 Bankruptcy for Businesses

In New Jersey, Chapter 11 bankruptcy is for those who want to get out of debt without liquidation. Chapter 11 allows business owners to keep their company in operation, which enables them to earn long-term revenue and pay debts more efficiently. If your business has been struggling as a result of COVID-19, you should consider a Subchapter V Bankruptcy.

Subchapter V Bankruptcy

Subchapter V is focused on helping local small businesses throughout North Jersey find debt relief. It helps organizations speed up and reduce the costs of filing bankruptcy reorganization under Chapter 11. There are multiple criteria required to file a Subchapter V, for example, your total secured and unsecured debt must not exceed $2,725.625.

Chapter 13 Bankruptcy for Businesses

New Jersey individuals that are operating a sole proprietor type business may file for Chapter 13, but corporations or partnerships cannot. For example, a consultant or a barber who cuts hair at his home can file for Chapter 13 bankruptcy, but a grocery store or retail store cannot.

About Middlebrooks Shapiro

New Jersey Attorney Melinda D. Middlebrooks and Attorney Joseph M. Shapiro have over 30 years of bankruptcy law experience. From our office in Springfield, NJ, we help clients with the most basic or complex personal and business bankruptcy cases by leading them through the legal process of numerous practice areas.

Call 973-218-6877 to speak with the experienced bankruptcy attorneys at Middlebrooks Shapiro. We’ll ensure you get the perspective you need to understand the full picture and the right guidance to have a successful bankruptcy, rebuild your credit, and move forward with your new debt-free business.