Legal Question in Business Law in New Jersey

Re: MY LLC Business

Chapter 7 won't buy you time but Chapter 11 might. Without knowing more, I would think that personally guaranteeing anything at this point is inadvisable.

There are law firms that make a niche of helping businesses in distress like yours. To find a good one, you should know that most of them to Chapter 11 work in conjunction. So, look first for a business law firm that does Chapter 11 as an adjunct to its other work. Find one of them soon and get a sit down consultation. Just any bankruptcy firm won't do. Find somebody who has done a fair amount of Chapter 11 work before and ask for and check references. Lots of law firms will want to help you and can lead you through the law of Chapter 11 but only some have the business sense to bring a growing business out the other end. My firm works does similar work with new starts and going concerns and there is a difference in the result when a large dose of business experience is mixed with the legal work.

That is not to say that Chapter 11 is inevitable for you. I mean only that you will probably find your best source of help within a firm that does Chapter 11 work.

Meanwhile, begin looking for another bank. There are some who will rescue you if you have orders. The credit committee of many banks consists of carbon copies of people with corporate tunnel vision. Once they decide you're out, you're out. So, there is little help to be had from your own bank once they call the line of credit. Watch out for mismanagement of any irrevocable letters of credit you may have. Expect them to take setoffs wherever and whenever they can. There are a few other things that you need to know that you will have to learn from your lawyer.

Good luck to you. Call if I can be of further help.

See also: http://info.corbettlaw.net/lawguru.htm