Chapter 11 Atlantic City Business Bankruptcy Lawyer & Business Bankruptcy Law Firm

Business, large and small, may file for ch. 11 bankruptcy in Atlantic City, NJ, which is a reorganization of debt and repayment plan.

What is a Chapter 11 Business Bankruptcy? Who would file a Chapter 11 bankruptcy in Atlantic City?

A bankruptcy case filed under Chapter 11 of the U.S. Bankruptcy Code will generally be filed by an Atlantic City area business, although this chapter is also available to individuals. While a business may choose to file a Chapter 7 bankruptcy (liquidation), it may not file a Chapter 13 bankruptcy (reorganization) because these are reserved for individuals. But it is very common for a business to want to reorganize its debts and stay in business rather than filing a Chapter 7 and liquidating all of its assets. Chapter 11 bankruptcies are available to Atlantic County businesses for this purpose (i.e., staying in business and restructuring the company's debts). Whether you are a small business or a large business, debt can beome overriding.

There are some famous Chapter 11 bankruptcy cases filed by some high profile companies: Lehman Brothers in 2008 (during the Wall Street collapse); Washington Mutual Bank which was quickly acquired by Chase Bank; and the Enron bankruptcy which brought to light unlawful accounting practices. It doesn't take unlawful accounting practices to get a business, even a small business, into trouble ... the current economy combined with poor bookkeeping and/or lack of financial planning can cause problems and conceal a looming financial crisis for Atlantic City businesses.

A business does not have to be completely insolvent before it is allowed to file a Chapter 11 bankruptcy case. Accountants and bookkeepers in the Atlantic City, Atlantic County, New Jersey, area can provide invaluable financial support to businesses and provide guidance of when it might be time to seek the advice of a qualified Atlantic City Chapter 11 bankruptcy attorney. Some Atlantic City area financial professionals include:

Lind, Edward O
31 N Brighton Avenue, Atlantic City, NJ 08401
(609) 347-7301

Raymond F Maguire & Co
26 S Pennsylvania Avenue 200, Atlantic City, NJ 08401
(609) 348-4231
Bender Barry D CPA
105 Liberty Avenue, Atlantic City, NJ 08401
(609) 344-8880

Donahue Thomas P CPA
2600 Revere Boulevard, Brigantine, NJ 08203
(609) 266-5304

 

Chapter 11 bankruptcies may also be filed by individuals in Atlantic City and Atlantic County (an individual may be an unmarried person, a married person filing alone, or a married couple).

Contact an Atlantic City bankruptcy lawyer for advice and assistance with your ch. 11 bankruptcy questions.The main reason an individual or married couple would want to file a Ch. 11 bankruptcy instead of a Ch. 13 case is because their debts may exceed the limits allowed in chapter 13 bankruptcy cases. Although similar to ch.13, an Atlantic City Chapter 11 bankruptcy is much more complicated and requires the advice of a qualified Atlantic City Bankruptcy Attorney.

Common types of creditors in Atlantic City, New Jersey, with whom a person may have very high debts that disqualify them filing a chapter 13 bankruptcy:

Banks and Mortgage Companies such as First Jersey National Bank/South (1310 Atlantic Avenue, Atlantic City, NJ 8401) and Guarantee Bank (South Carolina And Atlantic Avenues, Atlantic City, NJ 8404).

Car Dealers such as Sport Hyundai Dodge (6831 Black Horse Pike, Egg Harbor Township, NJ 08234 (609) 646-120) and Porsche of Atlantic City (7018 Black Horse Pike, Pleasantville, NJ 08232 (609) 645-9000).

Jewelry Stores such as Landau Jeweler (777 Harrah's Boulevard, Atlantic City, NJ 08401 (609-340-8800) and Michal Negrin Jewelry (Unit 1108, 1 Atlantic Ocean, Atlantic City, NJ 08401 (609-345-5336).

The Basics of a Chapter 11 Atlantic City Bankruptcy:

A qualified Atlantic City Bankruptcy Law Firm will have the expertise to guide their clients through the Chapter 11 bankruptcy process. Here are the common steps for Chapter 11 cases filed in Atlantic City and Atlantic County, New Jersey (but they may vary depending on specific circumstances):

► The case begins when the petition is filed with the bankruptcy court. Atlantic County cases are filed with the New Jersey Bankruptcy Court located in the 401 Market Street, 2nd Floor, Camden, NJ 08101 (856) 757-5485.

► The filing fee of $1,000 and administrative fee of $39 are paid.

► Upon filing of the petition and pursuant to Section 1107 of the bankruptcy code, the debtor assumes the responsibilities normally assigned to a trustee (as in a Chapter 7 or Chapter 11 case) and is known as "debtor in possession." This means the debtor may continue to operate the business, including paying employees.

► The debtor in possession also has the responsibility of filing monthly operating reports with the Court and the U.S. Trustee, filing and paying taxes, and creating a plan for reorganization.

► Although the debtor is given the authority to continue to operate the business in the ordinary course of business, the debtor is expected to do so in a manner in the best interest of all concerned. The interest of the creditors is protected by the formation of various creditor committees. These committees will have much influence on the reorganization plan being developed by the debtor in possession.

► A plan is proposed, a confirmation hearing is held, and eventually a plan will be confirmed.

► The plan is implemented.

► Confirmation of the plan can also mean discharge of debts incurred prior to confirmation, but there are many variables including whether the debtor is an individual or a business. Your Atlantic City Bankruptcy Attorney will advise you on the effects of confirmation of your plan.

Contact an Atlantic City Bankruptcy Attorney for advice and consultation about filing a Ch. 11 Atlantic County Bankruptcy.

Serving clients throughout Southeastern New Jersey, including Atlantic City, Barnegat Beach, Bridgeton, Cherry Hill, County Lake Estates, Fort Dix, Frankliville, Glassboro, Hammonton, Lakehurst, Lakewood, Millville, Mystic Islands, Pine Hill, Point Pleasant, Tabernacle, Toms River, Villas, Vineland, Waterford Works, Wildwood, areas in the vicinity of Atlantic City International Airport, and other communities in Atlantic County.