Legal Question in Bankruptcy in New Jersey

Under the bankruptcy code, a corporation which files a bankruptcy does not receive a discharge of its debts. Rather, it is simply an orderly liquidation (assuming you are not interested in a Chapter 11 reorganization). However, if the corporation does not have property or funds to pay its debts, then they are uncollectible and it really does not matter. A personal bankruptcy can relieve you of any personal liability. You should consult with a bankruptcy attorney. As for how long it will take, it depends upon what type of bankruptcy is filed. Relief is immediate, since a bankruptcy filing creates a stay of collection activities, including litigation, from the moment it is filed. If a bankruptcy is being considered, I would suggest that it be filed before judgments are entered and ideally before a lawsuit is commenced. My office is in Mt. Laurel. Feel free to call me if you would like to discuss this further.