When you’re struggling with high levels of debt and don’t see a clear way out for your business, filing for bankruptcy with help from a Wisconsin business bankruptcy attorney can be a good option. Business bankruptcy is a way to give your company a fresh start and, ideally, keep your doors open while letting you reduce your total debt. While bankruptcy may seem cut and dry, disputes can pop up during your case. Here are some of the most common disputes that your attorney wants you to be aware of.
Who Owns the Property
Creditors often try to sell at least some of the business’s assets or property to settle outstanding debts. This is normal and can work well in many cases. But for the sale to go through legally, the person filing for bankruptcy must be the owner of the property used to settle their debts. If someone is listed as a co-owner or the property is owned by someone other than the filer, disputes can come up, and those disputes can delay the resolution of your case.
Work with your attorney to determine who owns which pieces of property before you file. This will help streamline the process and can help you reach a resolution faster.
How Much a Property Is Worth
Property can be valued differently depending on who is performing the assessment or valuation. This difference can lead to disputes in your bankruptcy case. Remember, the more valuable your property is, the better it is for your creditors. If you represent property as less valuable than it really is, it could lead to disputes during your bankruptcy case.
Be open and honest with your attorney and cooperate with the court and your creditors to the best of your ability. This can reduce the number of disputes you encounter and can help you achieve a settlement more quickly.
How Much the Business Owes
Creditors’ estimates of how much a business owes on certain debts may not be in line with what the business owner thinks. And without a clear understanding of the actual debt involved, the court may struggle to reach a resolution. Provide your attorney with as much information about your business’s finances and debts as you can. They’ll be able to use this information to make sure your debtors aren’t overvaluing the amount of debt you have.
Whether the Debtor Should be Discharged
Business bankruptcy isn’t always clear-cut. There are gray areas where the filer may feel that they should not be liable for certain debts, but creditors feel otherwise. This discrepancy can lead to disputes during your hearing. Your attorney will do everything they can to help you get a fair settlement but know that these disputes can make your case take longer than it otherwise would.
How the Property Should Be Used
When you file for business bankruptcy, you may be able to keep your doors open. However, creditors may want to sell certain parts of your business to settle your debt. This creates a conflict between what you as the business owner may see as the right way to manage your property and how your creditors want to use it. Ultimately, the way your property can be used will likely depend on the type of bankruptcy you’re filing for. Your attorney will be able to guide you based on your long-term goals.
A Wisconsin Business Bankruptcy Attorney Can Help
Filing for business bankruptcy can be a great choice if you’re struggling to repay what you owe. But know that disputes can and likely will happen during your case. That’s why working with an experienced Wisconsin business bankruptcy attorney is essential. They’ll guide you through the process and represent your best interests from the very beginning.
At Kerkman & Dunn, we’re here to help. Schedule a free consultation with our team today.
