New Jersey Bankruptcy Law Blog

When employees are given information about how their benefits will function throughout their term at a company, they expect to receive nothing less than they were promised. In situations where retirement benefits such as pensions, 401K's and other options are available to people in New Jersey, they often pay their dues to receive their entitlements upon their retirement. 

However, a concerned group of former employees who have retired from a mine in Montana is facing uncertainty with the payment of their pensions following an announcement that the Kemmerer coal mine where they used to work has filed for bankruptcy. After restructuring plans were announced and it was determined that $1.5 million would be saved for bonuses throughout the bankruptcy period and that nearly $6,000 would be reserved for the retainment of upper-level managers, union leaders demanded that other solutions be arranged to protect the retirement plans of previous employees who sacrificed decades of work to build a savings they anticipated would last them throughout their later years. 

If you are running into financial difficulties with your business in New Jersey, you may have entertained the thought of filing for bankruptcy. While you know it will take a hit to your credit and potentially destroy your company, you are not sure if there are any other options. Fortunately, you may have a second chance if you can effectively reduce your debt and reallocate your resources to reorganize your financial expenditures. 

Reducing the amount of money you spend may increase your cash flow and allow you to optimize what you have to be able to close out the debts you have that are outstanding. According to Quickbooks, you should communicate your concerns with the people who are lending you money. If you are delinquent on payments are have outstanding balances, consider reworking your contracts and negotiating new terms so you can pay off your debts before your creditors send the collections companies after you. 

It's probably not the first time you've encountered financial challenges in life. In fact, if yours is like many other New Jersey households, you've likely been having ups and downs with money ever since you got married and started having children. Some years may be better than others. However, if something unexpected occurs, it can really rock your financial standing and, perhaps, even turn into an all-out crisis.  

How do you know whether your current financial struggles are more on the line of a par-for-the-course situation that will right itself in time or something more serious where you may need to reach out for added support or find an immediate debt relief solution to your problem? There are several key factors that may help you determine whether you should ride it out or start researching debt relief options.  

New Jersey business owners like you can't predict every ebb and flow of your business. Unfortunately, sometimes circumstances outside of our control make it so that we fall into debt. If you find yourself in that situation, there are still ways you can get back out of debt.

The Balance Small Business takes a look at three different types of bankruptcy options that are available to business owners. Today, we'll take a look at Chapter 13: personal bankruptcy. Though this is generally meant for individuals and not business entities, it can still apply to you if you have a sole proprietorship. This type of bankruptcy is similar to Chapter 11 in that you work with others to create a new repayment plan, which must then be approved by a bankruptcy court.