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.