Filing for business bankruptcy can help you get back on your feet if you’re unable to pay your bills or repay your debts. The process will vary from business to business and depends on the type of bankruptcy that you file. But no matter what type of bankruptcy you’re considering, it’s normal for the process to feel overwhelming. Your Wisconsin business bankruptcy attorneys at Kerkman & Dunn are here to help. Here are a few frequently asked questions to familiarize yourself with before you make your decision.
How Can I Tell if Filing for Bankruptcy Is a Good Idea?
Ultimately, filing for bankruptcy isn’t for everyone. But there are a few ways to tell if it’s the right choice for your business and your situation. If you’re struggling to make payments on your debts or can’t pay your bills each month, filing for bankruptcy can be a good choice. It’s also worth exploring if your business is on a steady downward trend and you’re not certain you’ll be able to get things back under control.
The easiest way to know for sure if filing for bankruptcy is in your best interest is to work with an experienced bankruptcy attorney. They’ll review your situation and the details of your case to help you determine which option is right for your needs and long-term goals.
What Types of Bankruptcy Should I Consider?
There are several types of bankruptcy that business owners can consider, including the following:
- Chapter 7: This form of bankruptcy typically discharges all of your debts and gives you a clean slate after everything is settled. Your business will close its doors once you file.
- Chapter 13: This type of bankruptcy lets you reorganize your debts to help you pay them off over time. You may be able to continue running your business when you file for Chapter 13 bankruptcy.
- Chapter 11: Like Chapter 13, Chapter 11 bankruptcies let you reorganize your debts to keep your business running. But you’ll typically relinquish control of the business to another partner or court-appointed trustee.
- Chapter 128: This type of bankruptcy is unique to Wisconsin. It allows you to make repayments of your business’s unsecured debts over a set time until the debts are repaid in full. It’s a form of debt consolidation sponsored by the state and lets you keep your business running.
Your bankruptcy attorney will be able to recommend the best option based on your situation.
Do I Need to Work With a Wisconsin Business Bankruptcy Attorney?
Yes. Though some sole proprietors may be able to file for bankruptcy on their own, other types of businesses are required to work with an attorney. And even if you’re able to file on your own, it’s in your best interest to work with a professional. Remember, bankruptcy attorneys understand the nuances of each bankruptcy option and can represent your interests in court if needed. They’ll give you the advice you need to make the best decisions possible.
Will Bankruptcy Get Rid of All of My Debts?
Not necessarily. Filing for Chapter 7 bankruptcy could let you discharge much of your business’s debts. But other types function as a repayment plan or restructuring of your business, which means you may still be on the hook for most of your business’s debt. Your attorney will be able to explain how each option will impact your situation.
Is Chapter 128 a Better Option?
Chapter 128 can be a better choice for business owners who are struggling but feel that they’ll be able to turn things around if they simply get help with their debts. If you’re interested in filing for Chapter 128, you’ll want to speak with your attorney as soon as possible.
Let Kerkman & Dunn Help
If you’re considering filing for bankruptcy, let an experienced Wisconsin business bankruptcy attorney from Kerkman & Dunn help guide you through the process. Contact us today to schedule a consultation.
