When starting a business, no one thinks they will fail; however, things happen, and there may come a time when filing for bankruptcy becomes the best course of action for yourself and your business.
New Jersey bankruptcy laws aren’t as generous as some other states, so your home is probably not safe, and if you’re a sole proprietor, filing for chapter 7 bankruptcy won’t be an option for you. Getting all of the information you can ahead of time, before you talk to New Jersey bankruptcy lawyers, is imperative so you can make the best decision for you and your business.
Before filing for bankruptcy keep in mind the following:
1. Have a plan for life after bankruptcy. It can be easy to look at your current situation as an end and in many ways it is, but also view it as a new beginning.
2. Have a good understanding of all bankruptcy entails and how it will affect your life from your credit rating to you ability to start a new business.
3. Know what brought you to this point. Learn form the situation so if you go on to start another business, you can avoid bankruptcy a second time.
Know the exemptions you have under New Jersey's bankruptcy lawKnowing and understanding the exemptions available to you can make navigating the New Jerseys' bankruptcy law easier and less time consuming. New Jersey bankruptcy law has two sets of exemptions schemes. You have a choice of which exemption scheme you want to use, and what you qualify to exempt depends on which scheme you use.
Understand the processAfter the passage of the 2005 Bankruptcy laws, filing for bankruptcy has changed drastically. It's not as easy to file for chapter 7 bankruptcy, and there are New Jersey bankruptcy rules. You should have a thorough understanding of what the process entails before you proceed, so you can make an already difficult process a little easier.
Get a New Jersey bankruptcy attorneyLike it or not, a good New Jersey bankruptcy lawyer is absolutely necessary when filing for bankruptcy in New Jersey, particularly when you have a business involved. The more assets you have, the more complicated your filing may be. You must find a good bankruptcy attorney in New Jersey to make a difficult process as smooth as possible.
- Gather and fill out all of your paperwork early in the process. You don't want the proceeding held up because you haven't filled out the necessary paperwork.
- Don't settle on the first New Jersey Bankruptcy lawyers you talk to. Shop around, and find an attorney that you feel comfortable in dealing with such a personal aspect of your life.