Legal Question in Business Law in New Jersey

Re: Business failing - what are my options?

You refer to the business as a partnership. Is it a true partnership, a LLC or corporation, or just 2 people conducting a business together? What documents, if any were filed to organize the business? This information is important to try to answer your questions. If you did not form some entity that may provide personal liability protection, both of you are on the hook for any unpaid bills, and a creditor can actually go after only one, and need not go after both, although there are rights of contribution from the other partner. This may require litigation between the partners. Even if you formed a protective entity, if there were personal guarantees of payment, the entity will not protect you or your assets from creditor claims. I suggest the immediate termination of business, and the possible sale of what remains, if there is any market for the product, the customers, equipment or the like. Then try to work some settlement with the creditors. Bankruptcy should be the last consideration, due to its costs and the fact that consideration may have to be given to whether only a business bankruptcy is required, or personal bankruptcy may also be required. These are questions to be discussed with a bankruptcy attorney, after you have explored all other options.

Re: Business failing - what are my options?

Hello neighbor. I am writing from 08097. My wife grew up in the Pine Hill/Clementon/Lindenwold area too.

Many of the questions you ask are business rather than legal matters. A CPA or an accountant can sometimes help you assess whether the business can survive but the ultimate decision to stay open or close or to sell depend upon financial factors and your business philosophy. That is, are you conservative or are you a risk taker, etc.

Now whether to declare bankruptcy IS a legal matter to be decided based upon some degree of financial data. Whether, you would be personally liable for the business debts depends upon whether you were a corporation or some other limited liability entity.

There are more issues here too complex to answer in this forum and without further information. You should consult with an attorney who handles business and/or bankruptcy matters so that you can be properly advised. A consultation isn't very expensive and could save you many thousands of dollars.

Good luck.

Re: Business failing - what are my options?

With a business failing in this fashion, you need to take quick action. the partner paying out of his/her pocket needs to stop the losses immediately. Much will depend on the specifics of your situation, whether you have a valid corporation (which may shield you from personal liability), what debts were personally signed for, and other facts. Putting your company into Bankruptcy may or may not be a good choice (it is expensive,and you must find out what benefits you will get out of it).

You need to talk to an attorney today. I am in northern NJ, call if I can assist. 973 890 0400.