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
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
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
Can a Business Recover After Bankruptcy?
Financial difficulties can affect any business, regardless of its size or industry. A bankruptcy filing doesn’t have to be the end, however. With the right legal strategy, many businesses can emerge from bankruptcy stronger and better positioned for long-term success. Understanding the process and what happens next is the first step towards genuine recovery. What… Read more
What Happens to Business Owners Personally in Bankruptcy?
Filing for bankruptcy can seem like a financial lifeline – but for business owners, the consequences don’t always stop at the front door of the company. Whether you run a sole proprietorship, partnership, or corporation, bankruptcy laws can extend into your personal finances in unexpected ways, even for experienced entrepreneurs. Understanding how personal liability interacts… Read more
How to Avoid Bankruptcy: Practical Steps for Troubled Businesses
Business bankruptcy filings are trending upward. U.S. Bankruptcy Court statistics show a 5.6 percent increase year-over-year, driven by higher interest rates, inflation, and debt taken on during the pandemic. Financial struggles can distract from day-to-day operations and mean missed growth opportunities. An experienced business attorney can help develop a strategy to avoid bankruptcy, including by… Read more
How to Protect Your Business When a Customer Files for Bankruptcy
Milwaukee area businesses need to know how to protect their revenue, cash flow, and legal rights when a customer files for bankruptcy. This action can be disruptive if the client involved is a longstanding partner upon whom your business relies. An experienced business attorney can help you understand your rights and proactive steps you may… Read more