66 East Main Street, 3rd Floor
Little Falls, NJ 07424
NJ Bankruptcy Law Office

Chapter 11 Bankruptcy

Board Certified in Consumer Bankruptcy

New Jersey Bankruptcy Lawyer!

With 28 Years Of Proven results!
"I personally meet with You and represent You!"
"I have never Lost a Chapter 7 Bankruptcy Case"*
"Experience = Results"
NJ Bankrupcty Law Firm
NJ Bankruptcy Law Firm

Ralph A. Ferro, Jr., Esq. Bankruptcy Lawyer

Board Certified in Consumer Bankruptcy Law

Chapter 11 Bankruptcy

Eligibility: Individuals Corporations Business Entities (Sole Proprietors/Partnerships)
  • Chapter 11 Bankruptcy is a Reorganization.
  • Chapter 11 is similar to Chapter 13 Bankruptcy since the Debtor creates a Plan of Reorganization (“Plan”) and pays back creditors over a period of time. Through the Plan, not all your debts are paid back and there is a possibility that a small portion is paid to your unsecured creditors. This is all worked out through the filing of a Petition and a Plan.
  • In most cases, Chapter 11 bankruptcies are intended for businesses with high debts.
  • However, some high-debt individuals can file a Chapter 11 Bankruptcy since they do not qualify for a Chapter 13 bankruptcy because they exceed the Chapter 13 debt limits.
  • Chapter 11 is complex and it is best to meet with me for a free consultation. In this way, I review your financial situation and your goals to see whether Chapter 11 is best for you.
  • In the past, Chapter 11 bankruptcies were primarily used for large businesses as the process is quite involved and a major monetary commitment is needed. Now, there is the option of Subchapter V of Chapter 11 Bankruptcy which allows small businesses to take advantage of the bankruptcy process in a faster and less expensive process (see link).
  • Misconceptions about filing Chapter 11 that are false:
  • The business is shutting down/closing

  • Your vendors and suppliers will run – Most will opt to stick it around and to work with you.

  • Customers will not want to enter into contracts with you when you file bankruptcy.

  • There is no hope to become profitable and sustain.

In summary, when you/your business is experiencing financial difficulties in staying afloat, it is best to meet with me. Many times, clients come in thinking they should file one type of bankruptcy when another is best for them. I am here to match your goals to the appropriate strategies to become more profitable.

Why file Chapter 11?
  • You have a great business and do not want to close down.
  • Just going through a tough financial period and you can get through this period with a deeper look into the operations and debts of your business.
  • Need time to refinance or streamline your business/sell some assets or unprofitable
    parts of your business.
  • During the process, you can reject contracts and leases that no longer fit your needs or have reached a point that these contracts make no sense financially.
  • Need bankruptcy protection so that your creditors do not seize bank accounts, continue with lawsuits or repossess assets, such as equipment or vehicles.
  • Desire to continue to earn money while keeping your customers and your employees.
  • Committed to fulfill contracts and obtain new contracts.
  • Develop a Plan to spread out your debts over a period of time with an affordable Plan.
  • There could have been one project wherein your company lost money or entered into a bad contract which cost your company money or profits. Your future looks profitable but for that one project or bad decision.
  • In summary, you do not want to shut down.

Call me now for an in-depth a Free Bankruptcy Consultation: Ralph A. Ferro Jr., Esq. – (201) 446-5904 for Chapter 11 Bk Help.

NJ Bankruptcy Law Office