Business Debt

Wall, NJ Business Debt Lawyer

Eliminate Business Debt With Cerbone Law Firm

Business debt is a familiar matter for all business owners, no matter their size or industry. If you are some who has created your own business, you understand the difficulties and demands of remaining profitable throughout the ups and downs of changing economic times.

You know that the one element that needs to be controlled in your business is your financial obligations. These obligations can become more than difficult when personal or market stresses, such as those we have currently experienced in our country, put your enterprise and your livelihood at risk.

Providing Business Debt Relief for 25+ Years

If you have accumulated bills that you no longer have the resources to satisfy at this time or in the future, you need answers and practical solutions. At Cerbone Law Firm, you can work with a Wall, NJ business debt attorney who has been providing solutions to business owners for more than 25 years.

Our attorney is a Board Certified Business Bankruptcy Attorney who has a thorough understanding of business operation, debt restructuring and management, and debt relief options for business owners. We can help you explore your legal options in this matter to allow you to make the best decisions for your business.

Need help with business debt management in Wall, Toms River, or the surrounding areas? Discuss your case in a free consultation with our attorney. Call (732) 402-0088 or contact us online.

Ensure That Your Business Debt is Properly Managed

Business debt generally is a useful method for getting your business underway. Business debt can even have some benefits such as creating tax savings on the interest you pay.

However, debt must be properly managed so that it does not become a liability. This can happen when too much of your revenue must be used to service your debt as opposed to reinvesting in your business.

Should various issues arise that decrease your revenue, whether temporarily or more permanently, your business can become overburdened with debt.

Business revenue can dip for various reasons, such as late-paying clients, unsuccessful marketing strategies, poor business planning, poor management, or economic conditions such as the 2020 pandemic business lockdowns.

How Much Debt Should a Company Have?

A debt ratio is used to describe the financial health of businesses -- the ratio reveals if a company has loans and how its credit financing compares to its assets. Whether or not a debt ratio is “good” depends on certain contexts -- the current interest rate, the company’s industry, and more.

Typically, debt ratios of 0.4 or less are considered “better” while businesses with a debt ratio of 0.6 or higher means that it will be more difficult to borrow money. However, even though a low debt ratio may suggest that a business is worthy of credit, it may also mean that investors will not be interested in purchasing stock from a business that has a low debt ratio. This is because a low debt ratio may limit the return that can be passed onto shareholders.

How To Get Rid of Business Debt

Without proper management of business debt, your enterprise can ultimately fail which is why you may need professional legal help in managing or reducing it to avoid failure.

Various strategies can be used to handle business debt that has gotten out of hand. These can include:

  • Reviewing and reorganizing your budget as an initial step in creating a plan to reducing or eliminating your debt
  • Finding ways to reduce expenses and cut costs to increase your revenue; this can be done through negotiation with suppliers or finding alternative less-expensive resources or by the process of elimination of certain expenses that can implemented without harming your business
  • Consolidating your debt, such as through a line of credit or business loan that makes debt repayment simpler, easier, or less expensive
  • Restructuring your existing debt through negotiations with creditors or lenders; you may be able to lower interest rates, extend terms, or work out other terms that are more favorable

Where the above options fail, you still have choices, such as selling your business, taking on partners who wish to invest in your business, or filing for bankruptcy.

The type of bankruptcy you file will depend on your situation, such as whether you are a sole proprietor, partnership, LLC, or some other type of corporation. You may be eligible to file for a Chapter 7, Chapter 13, or a Chapter 11.

Chapter 11 Business Filings

Chapter 11 filings allow you reorganize your company to pay off debt while continuing operation. This is done under the supervision of a court-appointed trustee.

You must create and file a detailed reorganization plan that shows how you can repay creditors over time while remaining in business. Certain debts will be prioritized for repayment and the entire plan must be approved by the court. Our attorney can educate you on how the process works and guide you through the process step by step.

Consult with Cerbone Law Firm

Many resources and legal actions may be available to you as a business owner to help you manage or eliminate business debt when it has become too great. Our attorney can sit down with you to fully review and analyze your situation to help you understand the options available.

We can provide explanations of the most productive actions to take to benefit yourself and/or your business. As a valued client, we want to put you in charge of your business destiny based on the recommendations we can provide. The benefits to you can be great, allowing your business to move forward towards a better future while relieving you of the stress and anxiety you may be facing.

Reach out to our office online or at (732) 402-0088 to learn more about how your business debt can be resolved today. Your initial consultation is free.

The Cerbone Law Difference

  • We Are Committed To Finding the Best Solution

    We promise to give you the same advice we would give to a family member.

  • We Care About Our Clients

    Our compassion for our clients and comittment to see them succeed is the driving force behind our practice.

  • We Have Over 25 Years of Experience

    Over those 25 years we have experienced it all and have learned how to have fun doing it!

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