Trenton Laundromat Closes and files Chapter 7 Bankruptcy

by | Sep 20, 2022 | Business & Commercial Bankruptcy, Chapter 7 |

On September 8, 2022 Kings Laundromat, LLC located at 985 Martin Luther Blvd in Trenton NJ filed a Chapter 7 bankruptcy. In a Chapter 7 bankruptcy the business closes on or before the filing date and a Chapter 7 Trustee is appointed to liquidate the assets in order to pay creditors. According to Bizapedia the business was formed February 4, 2019. Undoubtedly the Pandemic hitting just one year after formation had a major impact on the Laundromat. Although both individuals and companies can file a Chapter 7 bankruptcy, there are generally more issues in a Chapter 7. For one, with a business there is often assets to be liquidated. When an individual files bankruptcy, no assets are typically sold because individuals are allowed to exempt (protect) a lot of their assets. Other issues can also arise. Atrustee will carefully examine the books and records of the debtor to determine if there were any preferential payments made by the company before it filed and to make sure the owner did not violate any of his fiduciary duties. Because of these differences it is best to retain an attorney that represents businesses in bankruptcy.


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