New Jersey Business Bankruptcies and Personal Bankruptcies on the Decline

Throughout the first six months of 2014, the number of people and businesses filing for bankruptcy in New Jersey has dropped significantly.

According to a July 15 NorthJersey.com article, the number of businesses that filed for a bankruptcy declined by 15%, with personal bankruptcies such as Chapter 7 and Chapter 13 bankruptcies declining by about 6%.

The U.S. District Bankruptcy Court in Newark reports that the number of business bankruptcies fell from 512 to 433 in the first half of 2014. Two-thirds of these were Chapter 7 bankruptcies, which normally result in the business shutting down. The remainder of the cases were Chapter 11 bankruptcies, NorthJersey.com reports.

Chapter 11 bankruptcy offers businesses a chance to reorganize their debts and create a plan for repayment that they can manage. And contrary to popular conceptions, filing a Chapter 11 bankruptcy doesn’t cause a business to “go under” — it instead allows a business to start fresh with a debt restructuring plan.

Meanwhile, the number of individuals who filed for bankruptcy fell to 13,701 from 14,640, according to NorthJersey.com.

Some New Jersey-based businesses and companies that filed for bankruptcy in the first six month of 2014 include the Revel Casino Hotel in Atlantic City, Kid Brands Inc. and women’s plus-size retailer Ashley Stewart, along with several small restaurants and local businesses.