Hackensack, N.J.-based Comprehensive Behavioral Health Care filed for Chapter 11 bankruptcy Sept. 16, according to U.S. Bankruptcy Court for the District of New Jersey documents reviewed by Becker’s.
The nonprofit behavioral health provider attributed the filing to a years-long dispute with the landlord of its principal facility, mounting litigation costs, the threat of eviction and chronic building systems failures.
CBH Care moved into the facility at 25 E. Salem St. after signing a lease in July 2016 and paying more than $510,000 toward its buildout, according to a Sept. 18 declaration from Susan Devlin, executive director of CBH Care. The organization said problems emerged after occupancy, including heating and cooling failures, water intrusion and mold. In January 2018, a furnace shutdown caused pipes to break throughout the building, resulting in more than 25 separate leak incidents in a single day and closing the facility for two days.
The organization filed a lawsuit against its landlord in October 2020. That case was dismissed without prejudice in June 2024 and re-filed Dec. 12, 2024. Settlement discussions over disputed common area maintenance charges continued through 2025 before breaking down in December 2025. The landlord filed a motion seeking possession of the facility in June 2026.
“The Debtor commenced this Chapter 11 Case to reorganize its operations, resolve the landlord dispute in an orderly manner, and continue providing essential behavioral health services to the vulnerable populations it has served for over half a century,” Ms. Devlin said in the declaration.
CBH Care operates 20 healthcare and residential facilities and employs about 350 individuals. Approximately 45% of its total revenue comes from state and county government grant funds. The organization had about $667,600 across seven bank accounts as of the filing date and had drawn about $1.9 million of its $2 million line of credit with BCB Community Bank. It estimated approximately $810,000 in general unsecured claims, according to the declaration. CBH Care also asked the court for permission to use cash that secures its BCB Community Bank loan to fund operations, including payroll, under a proposed five-week budget projecting about $2.66 million in spending.
Becker’s has reached out to CBH Care for comment and will update this story if more information becomes available.
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