Bankruptcy Options For Insolvent Businesses

At times, business owners find themselves in the uncomfortable position of being unable to timely pay their debts. Our lawyers are experienced in many legal techniques that are useful for businesses in handling business debt. Contact us online today and we will respond promptly.

Our law firm, Levitt & Slafkes, P.C., has extensive experience representing business clients. Our two founding attorneys, Bruce Levitt and Shelley Slafkes, work together with businesses to find solutions to their debts.

Options For Businesses With Unmanageable Commercial Debt

There are many options available to our business clients, including direct negotiations with banks, landlords and other creditors; formal reorganization proceedings; and structured liquidations.

  • Negotiations: We often work with our clients' creditors to negotiate debt reorganization for their business. When appropriate, this can be a cost-effective approach for reducing commercial debt.
  • Chapter 11 bankruptcy: We work with businesses through the complex process of Chapter 11 business reorganization. This allows a business to reorganize or liquidate with court supervision and approval.
  • Chapter 7 bankruptcy: The sole purpose of a Chapter 7 business bankruptcy is to liquidate assets. In the case of a business, the appointed trustee reviews the business records and pursues collections and other causes of action on behalf of the creditors of the business.
  • General assignment for the benefit of creditors: Another option for businesses under New Jersey law is an assignment proceeding. During these proceedings, the business and its attorneys choose "an assignee" and the business assets are liquidated. The assignee uses the proceeds of the sale to pay off creditors. Attorney Bruce Levitt has served as assignee in many of these proceedings.

Contact Us Today To Discuss Your Options

For more information regarding the services that we offer to our business clients, please contact us. We are accessible via phone or email. Fill out our contact form online or call 973-323-2953.