Outpatient: Community Nonprofit Comprehensive Behavioral Health Files for Chapter 11 Bankruptcy
By Chris Larson | September 29, 2026 - September 30, 2026
Courtesy of Pixabay | CC0
Hackensack, New Jersey-based Comprehensive Behavioral Health Care Inc. (CBH Care) has filed for Chapter 11 bankruptcy protections. The nonprofit behavioral health and community support services provider attributes its financial straits to a prolonged dispute with its landlord.
The Landlord Dispute
The conflict began in January 2018 when a furnace failure led to multiple leak incidents at their main hub location in Hackensack, New Jersey. This resulted in:
- Prolonged HVAC failures, making the building uninhabitable.
- Ruined medications stored on-site.
- The proliferation of black mold.
CBH Care's court filing states that:
"The costs of protracted litigation, the inability to fully utilize the remises due to chronic HVAC failures and water damage, and the threat of eviction from the debtor’s principal facility have strained... [their] already limited financial resources."
About CBH Care
CBH Care operates 20 locations in Northern New Jersey, providing:
- Outpatient mental health and psychiatric care.
- Day and youth programs.
- Crisis and urgent care services.
- Residential and supported living programs.
- Community outreach and family support.
With approximately 350 staff members, the organization relies heavily on government grants and Medicaid reimbursements, receiving around 45% of its revenue from these sources.
The Bankruptcy Filing
CBH Care's documents state that they have explored all reasonable options to resolve their financial difficulties outside of bankruptcy, but:
"The escalating landlord dispute culminating in the landlord’s June 2026 motion for judgment for possession... have left [them] with no viable alternative to seeking chapter 11 relief."
They have submitted a five-week cash budget indicating approximately $2.7 million in assets and $4.5 million in liabilities.