Small Business Bankruptcy and Stay at Home Orders

As Stay at Home Orders continue because of Covid 19, Small Businesses will continue to be hit hard financially. Whether your business is a Salon in Cherry Hill New Jersey closed completely, a restaurant in Maple Shade New Jersey whose business has been reduced to takeout only services, or any other business, the longer the Coronavirus continues to impact New Jersey and the world, the harder it will be to recover. While Chapter 11 bankruptcy has always been an option to help businesses reduce and restructure debts, until recently it has not been practical for many small businesses. However, in February 2020 a new law went into effect called the Small Business Reorganization Act. As explained in this video, https://www.youtube.com/watch?v=EKjPGo7D-qk , the new law makes Chapter 11 more practical and affordable for small businesses. By streamlining the process and reducing the paperwork and the time frames involved, a successful Chapter 11 bankruptcy is both more likely and is less expensive. The Bankruptcy Courts and Bankruptcy Law Firms remain open and although much of the work is done remotely by video or telephone, the process is still working well. If you have questions about whether a Chapter 11, debt negotiation or other financial option can help you, you should consult an experienced bankruptcy attorney.