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Camden NJ Bankruptcy Law Blog

What is Chapter 13 and how does it work?

Throughout the United States, a significant number of people have fallen into the credit card debt and feel that they have no way out. Creditor harassment can pile additional stress onto New Jersey families, only making matters worse. There are several different bankruptcy options for people who are confronting unmanageable financial obligations. Chapter 7 is one option, though it may not be the right option for everyone because it is not as effective at protecting property. Filing for Chapter 13 is another option that potentially allows more flexibility in maintaining certain assets.

Once a bankruptcy petition is filed, creditors are prohibited from continuing attempts to collect a debt from the filer. Under a Chapter 13 reorganization, a plan is created for approval by the Bankruptcy Court. If approved, the person makes regularly scheduled payments which are managed by a court appointed trustee. The trustee then remits payments to the creditors. Under this plan, some of the creditors will get all of the money they are owed, and others will only receive partial payment.

Crumbs Bake Shop files for Chapter 11 with a sweet ending

When crazes happen, smart business owners jump on board and capitalize on the new fad. As the fad slowly begins to fade or the industry changes, the companies that were part of the fad may begin to feel the effects and lose money in their business. New Jersey businesses that suffer heavy losses may find some comfort in filing for Chapter 11 bankruptcy, in an effort to restructure and get back on their feet.

At the height of the cupcake craze, Crumbs Bake Shop Inc. was in its heyday and called a breakout company by Inc. magazine. The company was known for its gigantic 1,090 calorie cupcakes that served six to eight people and cost $42. As the craze came to an end, however, the cupcake giant noticed that restaurants were reducing their cake offerings by 1 percent, compared to three years prior when the need raised by 8 percent.

When is filing for Chapter 7 bankruptcy a good choice?

During hard times, many people are faced with the decision as to what they should do when the bills are piling up and there is not enough money to pay them. The harassment from collectors may soon prove to be too much and may cause someone to begin to consider other options. Which type of bankruptcy protection is the right choice for people in New Jersey, and how will they know? There are some indicators as to whether filing for Chapter 7 may be the best option.

The Chapter 7 process is reminiscent of a business closing down shop and liquidating all of its assets. When a person files for Chapter 7, all of one's assets that are considered non-exempt will be sold. All of the money that comes from the sales will be given to the creditors to work on paying down the debt.

Quiznos surfaces from Chapter 11 bankruptcy protection

Many people associate filing for Chapter 11 bankruptcy protection with negative connotations; however, it can be a great way for a company to survive the recession. Due to the economy and a lack of discretionary income, many New Jersey businesses may have taken a hit to their revenue and were forced to restructure to stay in business. Although it can be a difficult decision to make initially, it is possible to turn the situation around and emerge from Chapter 11 successfully.

Quiznos, the second largest sandwich chain in the United States, surfaced from a Chapter 11 in under four months. Many of the franchises sued the company, claiming that their ingredients were not competitively priced enough for them to make a profit. This helped to contribute to the $400 million in debt that the company had to overcome to stay in business.

Famous New Jersey casino filing for Chapter 11 bankruptcy

A famous New Jersey casino has been affected by Chapter 11 bankruptcy for a second time. The troubled Revel Casino is up for sale after the parent company has been forced to file for Chapter 11 bankruptcy. The bankruptcy petition was filed with the plan, citing the intent to sell most of the assets owned by the parent company, Revel AC Inc.

As the bankruptcy process proceeds, the casino will remain in operation. This is possible through a certain part of the bankruptcy agreement, which is known as a debtor-in-possession loan. Several years ago, the financial giant Morgan Stanley bought the New Jersey casino with the intention of improvement and expansion. However, just four years later, the investor sold its share of the casino and claimed that it took a loss amounting to over one billion dollars.

Spending trends that can lead to personal bankruptcy

New Jersey readers who are in debt know how easily debt balances can accumulate, leaving an individual facing personal bankruptcy or other difficult financial decisions. While a personal bankruptcy filing can be a viable option, it may be important to understand why it is common for many Americans to struggle with overwhelming debt. Sometimes, the reasons behind this are related to socioeconomic circumstances.

After emerging from the most recent financial crisis, wealthier Americans are paying for many things in cash. This includes tuition fees and a multitude of other expenses. However, lower-income workers rarely have the option of paying for things in cash. These workers have seen little to no increase in their income, but have struggled to keep up with rising prices of everything from higher education to groceries. Consequently, more of these individuals are going into debt in order to afford what are known as "non-discretionary" expenses.

Filing for Chapter 11 had a happy ending for The Dolan Company

Many people do not have as much discretionary income to spend as they did previously, which can have a large impact on businesses. Without as many sales as usual, some companies are struggling to stay afloat, and many are closing their doors from falling into mounting debt. Some New Jersey companies may discover that filing for Chapter 11 may be a great way to restructure and get back on track. One company recently found a way through Chapter 11 to do just that.

Just 81 days after filing voluntarily for Chapter 11, The Dolan Company and its affiliates -- also known as the "Company" -- announced that it made its way out of bankruptcy protection. The bankruptcy court confirmed the Company's plans to reorganize and that the Company's lenders now have ownership of Dolan. During the reorganization process, the Company was able to restructure its balance-sheet with the secured lenders and make huge strides in the ways that the capital is handled. Over the course of the restructure, DiscoverReady LLC -- which was previously Dolan's e-discovery business -- became established, independently owned and operated.

YMCA falls into financial distress and files for Chapter 11

Many Americans do not have the funds that they once did years ago due to the economic recession. This has affected the buying power many people have, which may not allow them to spend as much on extracurricular activities or donating to causes like they may have done in the past. Losing those spending dollars can have a huge impact on businesses in New Jersey and across the United States. If a business is having a difficult time making ends meet, filing for Chapter 11 bankruptcy may be a great way for the company to get back on its feet.

Recently, the YMCA of Metropolitan Milwaukee buckled under the economic pressure and filed for Chapter 11. The CEO of the organization stated that the YMCA was worth saving and that it matters to the community. The company had fallen into $29 million in debt and is now going to sell some of its real estate to begin the process of paying it off.

Filing personal bankruptcy may be a way to cut credit debt stress

When financial times are tight, a person may have to make the decision on what gets paid and what doesn't. Large amounts of credit card debt can seem nearly impossible to pay off. Filing for personal bankruptcy may be a way for a New Jersey resident to start over again, because the alternative of not paying can bring on some serious repercussions. If there aren't some kind of payment arrangements made with a creditor in situations where debt can not be paid off in the allotted time frame, the process that a person could go through can be damaging to his or her credit and can potentially result in legal action.

The harassment from creditors can start as soon as a payment has been missed. If a person avoids paying the minimum payment for a bill, even this amount can become higher once the fees for missing a payment are tacked on. If a payment is at least one billing cycle late, a creditor may contact the credit bureau, which can be damaging to one's credit score. After 90 days, the individual may lose the ability to use his or her card and will have most likely racked up additional fees for being delinquent.

Universal Cooperatives Inc. files for Chapter 11 bankruptcy

Many businesses have suffered the effect of the recession and have been forced to make some changes to stay afloat. Even after an enormous amount of effort, a company in New Jersey and across the United States still may not be able to make enough money through cutting costs and lay-offs. Companies that file for Chapter 11 may emerge from their difficult time stronger and with a more competitive edge.

Universal Cooperatives, Inc., a company that provides various services for the farming industry, recently filed for Chapter 11 bankruptcy protection. The company includes all five of its other owned businesses under the same umbrella. The company claims that it intends to sell the other businesses during this time.

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