No business owner wants to see their business struggle or fail. But when the economy is uncertain, anything can happen. If you feel that you’re in over your head and have taken on more debt than you can afford to repay, you have options and your Wisconsin business bankruptcy lawyers want to help. Here are a few debt relief methods to consider as you start exploring your options.
SBA Loans
You may be able to use loans from the Small Business Authority (SBA) to help you repay your business’s debts at a potentially lower rate than you’re paying now. If you’ve racked up a lot of debt on high interest credit cards and other high-interest loans, SBA loans could end up saving you money. Keep in mind that you’ll still have to make the minimum payments on the loans each month. If you’re late or default, your business may be back to square one.
Chapter 7 Bankruptcy
If you operate as a sole proprietor, there’s no effective division between your business assets and your personal assets. If your business is struggling and you have more debt than you can manage, filing for Chapter 7 bankruptcy may be a good option. This will discharge your business and personal debts so you can start over with a blank slate.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy lets you pay off a portion of your debts or establish a plan to repay all of your debts in full while still operating your business. Your business’s assets are not used to settle your debt since you’re agreeing to repay what’s owed. This helps you keep your doors open and ensures that you’re able to continue earning money and meeting your customers’ needs in the long run.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy lets you continue running your business while reorganizing the company. That means finding ways to settle debts while continuing to keep the company afloat. Sometimes, this could involve bringing in a new business partner or CEO. Other times, it might mean downsizing your operation to reduce your costs and improve your cashflow so you can repay your debts.
Chapter 128
Chapter 128 is a program that’s unique to Wisconsin. Business owners can consolidate their debts into a single monthly payment and gives them 36 months or three years to repay that debt in full. For many business owners, that could reduce the amount they owe creditors each month and could help them save money in the long run. Keep in mind that this method is unique to Wisconsin businesses only. You’ll want to speak with an experienced Wisconsin business bankruptcy attorney to decide if Chapter 128 is the right choice for your goals.
Work With an Experienced Wisconsin Business Bankruptcy Lawyer
If you’re considering your bankruptcy options as a business owner or are interested in a debt repayment plan, the best thing you can do is speak with a Wisconsin business bankruptcy lawyer. At Kerkman and Dunn, our team is here to help. Contact us today to schedule a consultation and let our attorneys help you figure out your best next steps.
