Jump to Navigation

Camden NJ Bankruptcy Law Blog

RadioShack may turn to Chapter 11 bankruptcy protection

Even companies that have been known as top leaders in their industry, have a chance to fall prey to a recession. As technology changes, some companies no longer have the stronghold that they once did and start to lose revenue. After a long string of losses, a New Jersey company may turn to Chapter 11 in an effort to reorganize and become more attractive to a suitable buyer.

RadioShack, once an electronics retail giant, has been enduring consistent quarterly losses since 2012. With technology changes, fierce competition and online shopping to deal with, the company's sales drastically dropped. The company reported in a regulatory finding that, without some sort of outside help, it would be unable to continue to pay to stay in business much longer.

Another New Jersey casino considers filing for Chapter 11

Many people have lost their means to discretionary income due to the recession, which equates to fewer people spending money on luxury items and gambling. The downturn of the economy has had a major impact on the New Jersey gambling scene, causing two casinos to file for Chapter 11 bankruptcy protection already this year. A third may be soon to follow in an attempt to restructure and become more attractive to a new buyer.

Trump Entertainment resorts -- which controls Trump Plaza and Trump Taj Mahal -- may be filing for bankruptcy due to its dropping revenue and mounting debt. Based on a recent filing with state regulators, the Trump subsidiary was more than $285 million in debt. The Trump Taj Mahal told regulators that it will have to indefinitely postpone payments on its property taxes. A casino analyst for Fitch Rating reported that the subsidiary went into forbearance because it was unable to continue making interest payments.

What are some of the pros and cons of personal bankruptcy?

It takes a lot of courage for a person to file for bankruptcy and realize that it may be time to get some help. Filing for personal bankruptcy can have a significant impact on one's future, so making the decision should not be taken lightly. Before a person makes the final decision to file in a federal Bankruptcy Court in New Jersey, there are some major advantages and disadvantages which should be looked at more in-depth.

Not all debt can be removed during bankruptcy, though most forms of debt can be discharged. Generally, student loan debt, taxes and child support obligations may not be discharged. Filing for bankruptcy does result in an automatic stay so that all of the calls from creditors cease immediately, which can provide a major sense of relief. A filer may lose all of their credit cards during the process but that may not be a negative result if they were part of the reason for the financial difficulties in the first place.

Can filing for personal bankruptcy help prevent foreclosure?

Due to the recession, many people have fallen into debt trying to make ends meet. Many New Jersey residents are in fear of losing their homes and being headed for foreclosure. Though many do not realize it, filing for personal bankruptcy may be a way for homeowners to protect their house and still find a way to deal with their debt.

According to a study by the University of North Carolina Center for Community Capital, homeowners have a 70 percent chance of hanging onto their home when they file for bankruptcy. According to the research director, homeowners have had the ability to try to save their homes by filing for protection for a long time. He continued to say that people retaining their homes is important, which is why the law has a means for people to keep their house out of foreclosure.

Revel Casino files a second time for Chapter 11 bankruptcy

Gambling is generally thought of as a time to have fun, but to others, a casino is no laughing matter. Revel AC Inc. in New Jersey has filed for bankruptcy twice since it opened in 2012. Much of the strain is being caused by patrons visiting nearby casinos in Pennsylvania, New York and Maryland. After a number of issues, the company made the decision to file for Chapter 11 bankruptcy protection for the second time.

Revel has had a number of issues since it first opened in April of 2012. The revenue for Atlantic City casinos has taken a huge hit and has gone down 40 percent from its high point back in 2006. Several months after the $2.4 billion casino opened, it was forced to close its doors for five days in light of Hurricane Sandy. One month later, the company filed for bankruptcy the first time, and then several months later it filed a second time.

New Jersey Chapter 12 Bankruptcy for Family Farmers and Fisherman

Chapter 12 was enacted in to make the bankruptcy process easier for farmers and fisherman.  While Chapter 11 can be an option, there are advantages in filing a Chapter 12. Those advantages include allowing a Plan of Reorganaization which is generally simpler than that required in a Chapter 11 case and easier to get confirmed. In addition, there are advantages relating to extending payments to secured creditors over a longer period of time.

Somerset Hills works on restructure after filing for Chapter 11

Children with severe disabilities who did not fit into the public school system were able to turn to Somerset Hills to learn and be treated. The New Jersey center consisted of a school for disabled children and a center for treating related illnesses. The center has now been forced to close and file for Chapter 11 bankruptcy protection in order to attempt to restructure and pay down some of its debt. The school ended up with over $3 million in debt, $1 million of which is to be paid to past and present employees into their pension funds.

An investigation looked into the alleged spending of taxpayer-funding as well as accusations that children were being put into restraints without just cause. After the Department of Children and Families found out about the investigation, they disconnected themselves from the treatment center and forced it to shut down. With the center closed, court documents revealed that the center's debts far outweighed its income, and the drop in enrollment equated to a large drop in revenue.

Simple steps for debtors to avoid filing for personal bankruptcy

Many people cannot bypass getting into debt at some point in their lives. Families in New Jersey and across the United states are saddled with more than $7,000 in credit card debt on average, plus the debt from mortgages and student loans. In cases where the debt is even higher, many people turn to personal bankruptcy to help them get back on their feet again. Here are some tips to help with crawling out of the mountain of debt and getting back onto stable financial footing.

Oftentimes, people fall into the credit card debt trap because they do not have a budget to manage what they are spending versus their income. The snowball method is a great way to begin paying down the debt. A person places as much money as he or she possibly can onto the smallest debt to pay it off, and then he or she continues onto the next smallest debt until all the debt has been cleared.

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.

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our
Bankruptcy Law Website

Office Location

Law Office of Robert Braverman, LLC

South Jersey
1060 North Kings Highway, Suite 333
Cherry Hill, NJ 08034
Phone: 856-254-2196 
Toll Free: 800-759-0767
Fax: 856-414-1230
Map & Directions

Willingboro Area Office
Law Office of Robert Braverman, LLC

1848 Burlington Mount Holly Rd (Route 541)
Mount Holly, NJ 08060
Phone: 856-254-2196
Toll Free: 800-759-0767
Willingboro Area Office

Center City, Philadelphia
15th Floor
1515 Market Street
Philadelphia, PA 19102
Map & Directions

Northeast Philadelphia
7909 Bustleton Avenue
Philadelphia, PA 19152
Map & Directions

FindLaw Network