The early trend during the first half of 2014 is a positive one for the Garden State. According to figures revealed by the U.S. District Bankruptcy Court in Newark, business bankruptcy filings are down about 15 percent and personal cases are down approximately six percent, compared to last year at this time.
Overall, the number of NJ business bankruptcies dropped from 512 to 433 and the amount of personal filings fell from 14,640 to 13,701. This pattern of declining bankruptcy filings may be a sign of an improving economy or declining unemployment, though only time will tell if the trend continues.
According to the bankruptcy court, two-thirds of the business bankruptcy filings were under Chapter 7 protection – where companies cease business operations and begin liquidating properties. The large majority of the other business bankruptcies fell under Chapter 11 protection, where businesses seek to reorganize in an effort to continue running the business.
Some of the more well-known New Jersey businesses to file this year include Revel Casino Hotel in Atlantic City, Kids Brands Inc. and Ashley Stewart, among many other smaller businesses.
Despite the encouraging numbers, the fact remains that financial difficulties are a potential problem for both businesses and individuals. People and businesses experiencing money problems have nothing to be ashamed of. We can’t always control things like that. A downturn in the economy, a run of poor weather, bad luck, divorce, unemployment and many other factors contribute to financial troubles.
Bankruptcy is a great option for business owners and individuals having difficulty getting out of debt. To determine what type of bankruptcy protection you should file for, it’s best to consult with an attorney who will examine your situation and provide your best option.
Contact the Law Office of Joel R. Spivack today to discuss your finances and bankruptcy options. Joel R. Spivack, Esq. has been helping New Jersey and Pennsylvania residents get back on track financially for over 25 years.