Operating Guidelines for NJ Small Businesses in Chapter 11

Depending on the nature of the business, there are many options for small businesses in NJ. For instance, a sole proprietor can choose to file under Chapter 13 or Chapter 11 to continue operating the business. These options vary according to the type of business and the debts of the business. In either case, an experienced bankruptcy attorney can provide guidance for the process.

What can a small business do to prepare for a Chapter 11 reorganization?

A small business can file under Chapter 11 if it needs debt relief. This is generally used for businesses that are unable to pay their debts, but want to continue operating. Sole proprietors may also be able to use Chapter 13 if they want to avoid liquidation of their assets. The main benefit of Chapter 13 is that it allows sole proprietors to keep their business, but it can also be used by individuals who need debt relief.

Businesses that are not small in size may still be able to file under Chapter 11 if they are public employers, including municipalities, school districts, commissions, or any other political subdivision of the state. These businesses are required to complete a quarterly report on the United States Trustee’s Form 11-PCR. These businesses are also required to complete a post-confirmation report. This link : https://www.scura.com/blog/operating-guidelines-for-nj-small-businesses-in-chapter-11-bankruptcy-cases