The Coronavirus pandemic has had a significant negative financial impact on Restaurants. While some restaurants have survived because of the takeout aspect of the business, for many restaurants in cities and towns like Cherry Hill NJ, Maple Shade NJ, Willingboro NJ and Sicklerville NJ the dine in experience is the main attraction. Allowing outdoor dining has helped, but a lot of people do not want to sit outside in hot weather and cold weather will eventually have the same impact. While Chapter 11 has always been an option for restaurants to reorganize, for many small businesses the costs were prohibitive. The new Small Business Reorganization Act provides an accessible, more affordable bankruptcy option. https://www.bravermanlaw.com/business-bankruptcy/
The new Small Business bankruptcy law streamlines the process and makes obtaining a confirmed plan of reorganization a little easier to obtain by eliminating certain obstacles that exist with a regular chapter 11. While the Chapter 11 will not help bring customers into the business, it will allow the restaurant owner to reduce and reorganize debts, enhancing the business’s ability to operate successfully moving forward.