Making the decision to file for bankruptcy isn’t something you should do lightly. But if your business is struggling and you’re unsure that you can repay your debts in full, filing could be in your best interest. But there’s more to the process than you might think, and taking the necessary steps to prepare for your filing can take the stress out of the experience. Here are a few steps your Wisconsin business bankruptcy attorney wants you to take to streamline the bankruptcy process as much as possible.
Figure Out Which Chapter You Want to File
There’s more than one type of bankruptcy that your business may be eligible for. Before you can file, it’s important to consider how each type will impact your business’s situation. Let’s take a quick look at the options you can consider:
- Chapter 7: This form of bankruptcy is designed to wipe out your qualifying debt entirely. However, you’ll lose your business’s assets and won’t be able to keep your doors open.
- Chapter 11: This form of bankruptcy lets you enter into a negotiated debt repayment plan with your creditors instead of wiping out your debt. As long as you make the required payments on time, you’ll be able to keep your doors open.
- Chapter 128: This bankruptcy alternative lets you enter into a repayment plan with your creditors without incurring the credit score hit associated with business bankruptcy.
If you’re unsure which option is best for your situation, consider speaking with an attorney. They’ll help you figure out which type of bankruptcy is best for your business.
Compile Your Documents
When you file for bankruptcy, your attorney and the bankruptcy court will need to have a clear understanding of your business’s financial situation. This means you’ll need to provide them with documents including:
- Financial statements
- Bank statements
- Current inventory
- Asset lists and descriptions
- Debt statements (loans, credit cards, etc.)
Your Wisconsin business bankruptcy attorney will tell you if there are any additional documents you need to provide.
Speak With a Wisconsin Business Bankruptcy Attorney
While it’s possible to file for bankruptcy on your own, doing so isn’t the best idea. You want an experienced attorney on your side to represent your interests with the court and to help guide you through the process. As soon as you think you’re interested in filing for bankruptcy, reach out to a Wisconsin business bankruptcy attorney.
You may want to schedule consultations with more than one law firm to find an attorney you’re comfortable with. During your search, look for an attorney who has helped business owners like you file the type of bankruptcy you’re interested in. This will help you get the best quality representation possible.
Have a Plan for Your Staff and Customers
Filing for bankruptcy can disrupt your business, even if you’re filing for Chapter 11. Consider creating a communication plan for your employees and customers (if needed) to help you explain what’s going on. Your attorney can help you review any communications to make sure they’re clear and paint your decision in the best light possible.
Keep in mind that if you’re filing Chapter 11 bankruptcy, you may be able to continue running your business as normal. In this case, you may not need to notify your employees, clients, or customers of your decision to file. However, if you choose to file for Chapter 7, you may need to notify your employees and your customers that you’ll be closing your doors.
Let Kerkman & Dunn Help
If you’re considering filing for bankruptcy, this checklist should help you start the process with confidence. But you’ll still need an experienced attorney to help you every step of the way. Contact us today to schedule a free consultation and to learn more about your options.
