Making the decision to file for bankruptcy has huge ramifications for individuals and families. However, when you file bankruptcy as a business owner, not only do you have your personal finances to consider, but also your business interests and your employees’ livelihoods to keep in mind. One big question that the owners of companies filing for bankruptcy often have is, “Am I required to close my business if I file bankruptcy?”
Will I Have to Close My Business If I File Bankruptcy?
Two Joe’s Crab Shack locations in New Jersey were abruptly closed recently in the wake of the seafood restaurant chain’s Chapter 11 bankruptcy filing. Reportedly, the Joe’s Crab Shack locations’ closures were so sudden that employees at the restaurants only found out that they had closed when they showed up for work that day. The locations that closed in New Jersey are in Brick and Eatontown. The closures occur as Ignite Restaurant Inc., which is Joe’s Crab Shack’s parent company, waits for a judge to decide whether to approve their bankruptcy plan. In addition to the closures, nearly 90 layoffs of Ignite Restaurant Inc. corporate executives were expected to take place in the coming weeks.
Not all businesses have to close if the owners file bankruptcy. It can depend on what type of bankruptcy the owner files and on their individual financial situation. One of the best ways to determine whether you can stay in business after filing bankruptcy is to discuss your situation with an experienced lawyer prior to filing for bankruptcy.
As New Jersey business attorney Gary Mason explains in the following video, filing bankruptcy is complicated, especially without the guidance of an experienced bankruptcy lawyer.
The New Jersey business lawyers at Garland & Mason have been successfully guiding businesses through the bankruptcy process for years.