When your New Jersey business is struggling financially, you may decide that it is time to file bankruptcy. The most common option for businesses is Chapter 13. It is important before you file that you understand how this form of bankruptcy works. That includes knowing what your responsibilities will be once you have filed. According to US Courts, fulfilling your obligations under the plan you create is essential to getting your case closed and coming out of bankruptcy. If you fulfill your obligations, there are many benefits you will reap.
First, you get to consolidate your debts into one payment. This can make it much easier for you to budget the payment. It also is much easier to ensure you make the payment on time because it is often taken out of your payroll.
Second, you will often have lower payments on each debt because the repayment time is spread out over the time frame set in your plan. This may give you more time than the original debt terms.
Finally, you are able to get some protection. You can protect your business and remain working during the plan. You also can often protect third parties who may have co-signed for your debts. This helps lessen the burden and prevents further issues that could have occurred had you not filed for bankruptcy.
Of course, you must make sure you follow the plan exactly as agreed upon to get the benefits. In the end, you will be able to pay off your debts and prevent asset seizures and lawsuits. This information is for education and is not legal advice.