Many people in New Jersey are aware that as the economy has declined in recent years, the bankruptcy-filing rate has increased. Businesses have by no means been immune to the economic troubles of the Great Recession and business bankruptcy filings are more common now than they were in the past.
As the Great Recession has continued to affect people and businesses in New Jersey and elsewhere, foreclosures are increasing in not only personal residences, but also for commercial property as well. Just like many home mortgage holders who increased their loans during the boom years for home improvements, businesses took on increased burdens to expand or pay for property renovations. Now, much like some homeowners, some companies are forced to consider the difficult choice of commercial bankruptcy to stop foreclosure.
New Jersey Senator Bob Menendez has joined several other senators in sponsoring federal legislation aimed at getting medical debt off the shoulders of hard-working Americans. At issue is the fact that medical debt continues to plague as many as 72 million individuals across the country.
The foreclosure mill could be back in business in New Jersey after a state Supreme Court ruling on Feb. 27. The 5-0 decision clarified what is required to be included in a so-called "notice of intent" to initiate a foreclosure action.
The recession that began in 2008 continues to claim business victims in Camden and throughout New Jersey. While some say there are signs of an economic recovery on the horizon, those companies that continue to struggle sometimes find it in their best interests to seek the protection of a bankruptcy filing. Much like Chapter 13 for individuals, a Chapter 11 bankruptcy allows a business to submit a proposed plan to reorganize its entity and create a payment plan. If approved, the result can be a company that emerges from bankruptcy leaner and more competitive.