Like many businesses in New Jersey, for several years a tutoring business was successful for a man in another state. However, after competition began to eat away at the market share of the business, the owner found that he was no longer able to make ends meet. This led to his seeking to first obtain private loans from friends and family and then to a filing of personal bankruptcy.
The number of bankruptcy filings occurring in New Jersey and across the nation is down over the past year, according to a recent report. This includes Chapter 13 bankruptcy filings that seek to have a debtor repay much of what is owed to their creditors through a multi-year payment program. This type of bankruptcy is most often filed by those who are employed, thus it is sometimes called the wage-earner's bankruptcy.
When a company files for bankruptcy in New Jersey or elsewhere in the country, there can be changes for the employees, both past and current, of that organization. In one recent commercial bankruptcy from AMR Corp. and American Airlines, the changes may come as a shock, should they be approved by the bankruptcy court. AMR Corp., the parent company of American Airlines, has filed a lawsuit as part of the bankruptcy proceedings, asking that the court allow them to stop paying for life insurance and medical care for its retirees.
People in New Jersey facing bankruptcy often have many questions regarding the process. Many worry about keeping property and how to minimize the impact of a filing on their credit score. One area of particular concern for many filing personal bankruptcy is credit card debt and payments to creditors.
The economic landscape is bleak across the entire nation, and not just for consumers. Many businesses are finding it necessary to file for commercial bankruptcy protection when expenses outweigh revenue. One commercial bankruptcy to have hit the news recently is that of MF Global, led by a former governor of New Jersey. The company first had trouble back in October in the wake of investor panic related to its exposure to European sovereign debt.
As many New Jersey business owners know, running a business is no small task, especially in a struggling economy. Owning a business is not cheap, and sometimes the expenses simply become too much. This seems to be exactly what happened with a nuclear waste storage facility when it reported debts that were five times greater than its assets.
For many in New Jersey, the choice to file for bankruptcy is not easy, but it is often necessary. Faced with overwhelming amounts of debts that cannot be repaid, a person may seek a Chapter 7 bankruptcy in order to get a fresh financial start. This new start can offer relief to those drowning in personal debt.
The great recession that struck New Jersey and the nation has understandably resulted in financial hardships for many. Increased debts, foreclosed homes and job loss have made many consider personal bankruptcy as a means of finding a way to confront their financial problems. And bankruptcy can certainly be a great relief when it discharges overwhelming debts.
New Jersey Senator Bob Menendez has joined several other senators in sponsoring federal legislation aimed at getting medical debt off the shoulders of hard-working Americans. At issue is the fact that medical debt continues to plague as many as 72 million individuals across the country.