chapter 128 bankruptcy

If you’re a business owner who’s struggling to keep up with debts and bills, filing for bankruptcy can easily feel like the only option. And with bankruptcy comes a major disruption to your business and your ability to keep your employees working. Once you file, you risk losing your business and may not be able to file for bankruptcy again if you hit financial trouble down the line. Luckily, some business owners may be able to file for a Chapter 128 bankruptcy alternative. And this alternative lets you file more than once. Here’s what your Milwaukee bankruptcy attorneys want you to know.

What Is Chapter 128?

Chapter 128 is a debt repayment plan that you enter into with your creditors to repay your debt over time. You’re able to lump most if not all of your business’s unsecured debt (think credit cards and business loans without collateral) into the agreement. When you file, a trustee will collect all debt payments and distribute them to the appropriate creditors until your debts are paid in full by the end of your agreed-upon repayment term.

If this sounds similar to a form of debt consolidation, you’re right. It is! But instead of filing for a consolidation loan with a local bank, you’re filing for assistance with the state.

How Many Times Can You File?

Chapter 128 doesn’t have any restrictions on the number of times you can file. If you file once and repay your debt in full but then hit a period of financial strain and can’t make your payments as they are, you can file again. And filing offers a few unique benefits compared to traditional business bankruptcy.

  • Businesses who may not otherwise qualify for bankruptcy can file Chapter 128, giving you the opportunity to repay your debts without closing your doors.
  • Since it’s not a bankruptcy, Chapter 128 lets you keep your business running without having to sell your property or assets.
  • Chapter 128 is cheaper for struggling business owners than filing for Chapter 7, Chapter 11, or Chapter 13 bankruptcy.
  • Chapter 128 stops garnishments so you can maintain your operating capital.

If you’re a Wisconsin resident and operate your business in Wisconsin, Chapter 128 may be a great option for your company.

How to Tell Chapter 128 Is the Best Option

Ultimately, Chapter 128 isn’t for everyone. If you’re looking for a completely clean slate and want to discharge your debts and close your doors, bankruptcy will likely be a better option. But if you want to keep your doors open, be able to continue paying your employees, and continue paying yourself, Chapter 128 is worth considering. 

Keep in mind that it’s best to consult with an experienced Milwaukee bankruptcy attorney before you make your decision. They’ll be able to review your situation and help you make the right choice for your business and your long-term goals.

Schedule a Consultation Today

Filing for Chapter 128 can alleviate some of your stress and help you keep your business running. But it’s not something you should enter into lightly. Schedule a consultation with Kerkman and Dunn today and let our experienced bankruptcy attorneys help you make the best choice for your financial future.

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