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Mr Zimmerman was helpful and kind and prompt . He always answers his phone and that is refreshing . I will be using him for my bankruptcy in the future. He is one of the good ones . He is an outstanding attorney who truley care . He made ev...
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Mr. Zimmermann is a fantastic bankruptcy attorney who handled my case with care, efficiency and urgency. We were able to beat a judgement against me in the nick of time, and I truly feel a sense of relief due to the services of Mr. Zimmerma...
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This Lawyer will go above and beyond for you. As well as show tremendous empathy for those who are vulnerable and scared. His compassion to help civilian's shows through his actions and with his word. When he says he is going to call he cal...
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I’ve worked with Mr.Zimmerman on two different legal issues. In both instances he was fantastic! He is extremely knowledgeable and compassionate and able to breakdown a course of action into language anyone can understand. I would highly re...
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I highly recommend Mr. Zimmermann as an attorny. I recently purchased an investment property and boy was he helpful. He was easily available, very clear in explaining various concepts, laws and regulations, and provided very helpful tips o...
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- posted: Mar. 30, 2023
A Chapter 13 bankruptcy is a realistic option for sole proprietors to reorganize business debt. Individual owners who have not created a separate business identity are personally liable on the debts of the business. If your business is in financial straits, Chapter 13 bankruptcy lets you navigate out of them without liquidating your business or personal assets. Chapter 13 can reorganize your personal debts as well as those of the business. It may even permit you to alleviate personal liability for business loans, such as those based on personal guaranties.
Chapter 13 bankruptcy offers several advantages for a sole proprietor in financial crisis, including these:
- It avoids liquidation of all or most of your assets.
- You can keep your business running.
- You can reorganize debts and create a payment plan.
- It allows you to return the business to profitability as the market improves.
- You can exempt “tools of the trade” and other assets you need to continue to operate your business.
- You can eliminate remaining balances on unsecured business or personal debts as part of the repayment plan.
- You may be able to negotiate and reduce the amount you owe on certain debts.
As part of the process, the filing of your Chapter 13 petition creates an automatic stay of all debt collection efforts against you. You then can work out a debt repayment plan that will last for three to five years. The bankruptcy case may end before the set time period if you can pay off your debts sooner.
Chapter 13 bankruptcy protection is available only to individuals, not business entities such as corporations or LLCs. Instead, they must use Chapter 11 to reorganize their debt.
If other people have provided your business with capital in the form of loans or investments, you will want to discuss the option of a Chapter 11 bankruptcy. In a Chapter 13, creditors may not pursue debt collection efforts against the filer of the petition, but they could potentially go after other people who are personally liable on any debts.
The Law Offices of James C. Zimmermann has wide experience helping business owners achieve debt solutions, including Chapter 13 relief. Call us at 973-764-1633 or contact us online for a free initial consultation. We have offices in Wayne, Vernon, Pompton Lakes, Hackensack, and Nutley, New Jersey.
