No business owner ever wants to see their company struggle. But even the most well-meaning and well-run businesses can hit economic snags that make keeping their doors open seemingly impossible. That’s where filing for bankruptcy with an experienced Wisconsin bankruptcy attorney can help. Filing for bankruptcy can give your business a fresh start and could help you keep your doors open. Here are a few benefits to filing for business bankruptcy in Wisconsin so you can better understand how doing so could impact your future.
Gives You the Chance to Keep Your Business Running
Depending on the type of bankruptcy you file, you may be able to keep the company running during the bankruptcy proceedings. This means you’ll continue to meet demand from your customers and can keep at least a few of your employees working and earning the money they depend on.
Keep in mind that some forms of bankruptcy may require you to shutter your doors as soon as you file. You’ll want to speak with an experienced attorney to make sure you’re filing for the right type of bankruptcy for your company, your values, and your long-term goals.
Stops All Collections Calls
One of the biggest benefits of filing for business bankruptcy is that once you start the process, all calls from collections and creditors must stop. It’s no longer their right or their job to try to get your business to pay them back. It’s on the court to determine what’s viable and which assets can be used to settle your outstanding debts.
If creditors continue to call or try to take action against your business once you’ve filed for bankruptcy, you’ll want to contact your Wisconsin bankruptcy attorney as soon as possible and let them report the issue to the court. Depending on the actions the creditors took, the court may penalize the creditors for their actions.
May Give You Access to Financial Help
Believe it or not, you may be able to request financial help as part of your bankruptcy proceedings, particularly if you’re filing for Chapter 11 bankruptcy. This form of bankruptcy helps you keep your doors open while you file. But if you’re financially strapped and don’t have enough funds to keep your business running, the court may step in and help.
You could receive financial assistance to cover employee wages, property taxes, rent, and other similar required expenses. Keep in mind that this is at the discretion of the judge. You’ll want to let your attorney argue on your behalf if you’re trying to push for financial assistance.
Makes Selling Assets Easier
Often, businesses will sell assets to pay back their debt. But if your assets are encumbered by a lien, like a car loan or equipment loan, selling those assets could be more difficult. When you file for bankruptcy, you’re able to sell those assets even if they have liens on them. The bankruptcy effectively removes the liens from those assets and lets you use the full proceeds to settle your debt.
Discuss Your Options With a Wisconsin Bankruptcy Attorney
There’s more than one type of business bankruptcy that you can use to help settle your debt and get the fresh start your business needs. Figuring out which method is right for you can be tough if you’re not familiar with the ins and outs of each bankruptcy type.
Rather than trying to figure things out on your own, work with an experienced Wisconsin bankruptcy attorney. Schedule a consultation and discuss your concerns and your business’s situation with them. They’ll be able to review your case and help you find the right bankruptcy type for your goals.
Contact Kerkman & Dunn Today
If you’re certain that filing for bankruptcy is the right move for your business, make sure you have an experienced attorney to represent your case. At Kerkman & Dunn, our team specializes in helping business owners file for bankruptcy and we’ll help you figure out the best next step for your company and your bottom line. Contact us today to schedule a consultation.
