What Happens to Personal Guarantees When a Business Files Chapter 11?
Your company’s Chapter 11 filing does not stop the bank from suing you for the guarantee you signed. The automatic stay protects the debtor who filed, but it does not protect your interest in marital property or the building pledged as collateral. Most owners learn this after receiving a demand letter. The Automatic Stay Stops… Read more
Congress Moves to Raise the Subchapter V Debt Limit Back to $7.5 Million – What It Means for Wisconsin Businesses
The Senate has already voted on August 3, 2026. It unanimously passed S. 3977, the Bankruptcy Threshold Adjustment Act of 2026, which permanently raises the Subchapter V debt limit to $7.5 million. However, the House has not yet done so. Until the House does, a company in Wisconsin carrying debt above the current much lower… Read more
Are Non-Compete Agreements Still Enforceable in Wisconsin?
Yes, and the federal rule that was supposed to wipe them out has now been formally removed from the books. The FTC’s nationwide non-compete ban has been struck down in court and abandoned on appeal and removed from the Code of Federal Regulations as of February 12, 2026. Wisconsin law still governs your agreement and… Read more
Preference Payments: Can a Bankruptcy Trustee Claw Back Money You Already Received?
Yes. A bankruptcy trustee can sue you to recover money that a customer paid to you before the filing, even if you earned it, issued an invoice for it, and did nothing wrong. These claims are called “preferences”, and the demand letters usually arrive one or two years after the payment was cleared. The Lookback… Read more
What Is a Subchapter V Trustee and What Role Do They Play in Your Reorganization?
File a Subchapter V case, and a trustee is appointed in every one. Here’s what surprises most business owners: the trustee doesn’t take over your company, you keep running it. The trustee’s job is to help you reach a confirmed plan, not to push you out. Who Qualifies for Subchapter V in 2026 Subchapter V… Read more
What Is a Fraudulent Transfer and How Can It Threaten Your Bankruptcy Case?
Give your car to your brother, sell your business to a friend for a dollar, or move money into a trust before you file, and a bankruptcy trustee can undo the whole thing. Federal law lets the trustee reach back two years. Wisconsin law allows that stretch to four years. What Counts as a Fraudulent… Read more
Signs Your Business May Need to Consider Bankruptcy — Before It’s Too Late
Most business owners who end up in bankruptcy court didn’t fail suddenly. A comprehensive study of over 4,200 companies that filed between 2023 and 2025 found that measurable warning signs appeared 12 to 24 months before the actual filing in nearly every case. The data doesn’t lie. Businesses just weren’t listening. Recognizing distress early is… Read more
How to Evaluate Whether a Business Dispute Is Worth Taking to Federal Court in Wisconsin
Filing a business dispute in the wrong court is not just a procedural inconvenience. It can sink the case before it starts. Wisconsin businesses facing serious commercial conflicts need to know, before they commit to a strategy, whether federal court is even an option – and if it is, whether it’s the right one. The… Read more
Breach of Fiduciary Duty Claims Between Business Partners
When two or more people form a business partnership, they rely on trust. The law in Wisconsin reinforces this trust through legally binding obligations known as fiduciary duties. If a partner violates these duties by stealing from the company, hiding transactions, or engaging in secret competition, the consequences can be devastating financially. Understanding how these… Read more