Business is a large and complex field. Properly managing a business can sometimes be too much for someone to handle. Questions may abound. What do I have to do to sue? Do I have to domesticate a judgment in New Jersey? What do I do if a close partner company shuts down while still owing money to my business?
Businesses shut down for many reasons, whether a business cannot survive the bad economy, poor management, or it is simply a bad business. One outcome of a business shutting down could be that the business files for Chapter 11 Bankruptcy. But where does that leave the lending or creditor party? If a business has claimed bankruptcy there are statutes in affect making it difficult for creditor’s to collect money owed to them by the delinquent party. When dealing with debt collection, it is important to understand those statutes and the options you have as an owed party. As a Union New Jersey business law firm, The Jayson Law Group LLC, is dedicated to helping you understand your rights and fight for what is owed to you.
When approaching an attorney about creditor’s rights after a failed business deal, it can be helpful to know a bit about Chapter 11 Bankruptcy. Firstly, Chapter 11 is most utilized by businesses as opposed to individuals (but individuals can also apply for Chapter 11). With most instances of Chapter 11, the debtor maintains operation of the business and instead, is considered a debtor in possession. The debtor in possession is subject to the jurisdiction of the court, which often calls for business restructure. Sometimes this includes being able to reject a current contract and put litigation on hold with an automatic stay.
The Newark business lawyers at The Jayson Law Group LLC, can assist in protecting creditor’s rights against the potential harm of Chapter 11 statutes. For instance, the most common avenues include: Searching out a chance in the reorganization planning for creditors to vote against the confirmation and thus possibly regain their assets from the debtor. Additionally, a prepackaged bankruptcy plan can be agreed upon between creditor and debtor, benefiting both parties. Even, determining your securities can make a difference in your case. Call the Union, New Jersey business lawyers at The Jayson Law Group LLC today to protect your rights as a creditor and successful business.