All indications are that the recession has really slammed entrepreneurs and small business owners, those risk takers who are often considered the backbone of the economy. According to some estimates, small business is the primary driver in commercial bankruptcy filings today.
If you own a troubled small business in Wisconsin, the law won’t let you file under Chapter 13 directly as a business. However, in your Chapter 13 paperwork, you might be able to include your business-related debts for which you are personally liable. So an individual bankruptcy in Wisconsin does provide some means for dealing with heavy debts that you’ve piled up in a business.
Many self-employed individuals, sole proprietors, and other small business owners operate in the service sector. In fact, many of them started up their businesses after being caught in a mass layoff. The ripple affect of further corporate cutbacks has caused these small businesses to lose a lot of their contract work. Other factors that have hamstrung small business include the credit crunch, collapsing real estate values, and reduced consumer spending. So a Milwaukee small business bankruptcy among other possible options is not out of the ordinary when the economy is on the skids.
So if your small business is going sideways, you’re certainly not alone. In this environment, you might want to figure out your risk tolerance going forward. In other words, how much more cash do you want to put in to keep the business afloat or how much longer can you operate in the red in an anticipation of a turnaround. If your business has reached the point of no return, it may be time to talk to a debt consolidation lawyer. A skilled and experienced Wisconsin bankruptcy lawyer can help you determine which business debts, if any, can be included in a possible Chapter 13 Bankruptcy in Milwaukee or elsewhere in the state.