While Chapter 11 bankruptcies are normally utilized by businesses, individuals can also pursue this option. Doing so takes a bit of work however, as Chapter 11 can be more complicated than Chapter 7 or 13, which most people go for when filing for bankruptcy. Debt.org explains what you need to know if you choose this debt relief option and how you can ensure the best possible results.
Even when a business in Hackettstown struggles with debt to the point of considering bankruptcy, its potential to continue to operate (and even grow) does not go away. Business owners might even use a bankruptcy case as the springboard needed to make organizational and cultural changes that place a company back on the path to sustainability. This may not be easy, however, as news of a bankruptcy might impact both a business' patrons as well as its employees, prompting them to call its future into question.
The common school of thought is that the primary benefit of a Chapter 11 bankruptcy is that it allows business owners in Hackettstown to continue to operate their companies while reorganizing their infrastructures and simultaneously stopping creditors from taking actions against them. Yet creditors may also view a Chapter 11 bankruptcy as a way of forcing a debtor company to stop avoiding its liabilities. Thus, your creditors can indeed try to force you and your company into bankruptcy.
Your New Jersey company has not done as well as you hoped, and now you are struggling to cover your debts and operating expenses each month. Efforts to find more funding have not been successful, but you are not ready to close your business. At The Law Offices of Jonathan Stone, we often explain the benefits of Chapter 11 bankruptcy to business owners who are struggling with debt.
It might be difficult for business owners in Hackettstown to consider filing for bankruptcy simply because they do not want to lose control of their companies. Even in situations where a Chapter 11 case could help alleviate their financial struggles and allow their operations to continue, the thought of the use of their business assets and properties being at the discretion of an outside party (such as a bankruptcy trustee) may be enough to scare them away from the process altogether. Those same business owners will likely be relieved to know that law allows them to retain control of their bankruptcy cases through the role of the "debtor in possession."