Chapter 11 Bankruptcy
Bankruptcy attorneys helping Vernon businesses
If your corporation, partnership or sole proprietorship is struggling with substantial debt, you may consider bankruptcy to keep your business viable while you develop fresh strategies for future growth. Often referred to as “reorganization bankruptcy,” Chapter 11 bankruptcy permits your business to continue operating while you pay creditors under a court ordered payment plan. Once your business has filed for bankruptcy, creditors must immediately stop collections efforts, including harassing letters and phone calls.
Protecting your personal assets
The owner of a sole proprietorship does not have an identity separate from the business, so the bankruptcy court does not distinguish between the business’s assets and the owner’s personal assets. The filing of Chapter 11 bankruptcy places the owner’s assets at risk. The experienced attorneys at The Law Offices Of James C. Zimmermann in Vernon can develop successful strategies to protect your personal assets from your business’s creditors, while putting your business in the best possible position to succeed going forward.
Corporate and partnership bankruptcy
The owners of a corporation that files a Chapter 11 bankruptcy do not risk their individual assets, except for their investments in the corporation. Although typically partners are held separate from their partnership, in some cases, a partner’s personal assets may also be at risk. Our NJ bankruptcy attorneys consider the business’s best interests as well as those of corporate stockholders or partners of the business.
Bankruptcy plan and debt discharge
Confirmation of the reorganization plan discharges your business debts that were acquired prior to the plan’s confirmation. Your business is bound by the terms of the reorganization plan, which forms new contractual terms that supersede all contracts entered into prior to your bankruptcy discharge.