New Century Transportation, the NJ-based trucking company announced that it plans to shut down and file for Chapter 7 bankruptcy liquidation. In a June 9 letter written to its employees, New Century Transportation wrote that the decision came after its lender “unexpectedly declined to continue funding on a regular basis.”
This decision prompted them to seek other financial alternatives, including looking for buyers, but the efforts of the company have gone in vain.
New Century Transportation is headquartered in Westhampton, NJ and is specialized in truckload and less-than-truckload services. According to its website, the company holds a fleet of 2,000 trucks with about 1,500 employees who will soon be out of work.
There are many times when business owners have to make difficult decisions regarding their finances and the future of their companies. When business owners are struggling with increasing debt and shrinking revenue, bankruptcy is an option they often consider.
In this case, New Century Transportation opted for a Chapter 7 liquidation bankruptcy, but there are other options available to businesses. For business owners who are not looking to close down their company and are just looking for a moment to catch their breath and recover, Chapter 11 bankruptcy protection may be a better option. Under Chapter 11 protection, business owners would be allowed to reorganize their debt to be repaid over the course of time.
Before proceeding with your bankruptcy filing, it is wise to consult with a qualified bankruptcy attorney. Your lawyer will be able to advise you of which bankruptcy options are your best choice and will assist in the filing of documents and your representation to the bankruptcy court and trustee.
Contact the Law Office of Joel R. Spivack today to talk about your bankruptcy filing. Joel R. Spivack, Esq. has been helping NJ and PA residents with their financial issues for more than 30 years.