Wisconsin Bankruptcy Law

Good news for Wisconsin consumers with a sweet tooth: As a follow up to a previous blog entry, the bankrupt Milwaukee-area candy company Quality Candy looks like it found a buyer and apparently will stay in business. Family owned Quality Candy, which has been in operation for about 100 years, filed for Chapter 11 bankruptcy in January. It was an unusual bankruptcy filing in that the company reported debts of $3.4 million but assets of about 4.4 million. A group of local investors have submitted a $2.2 million offer to buy the company, which needs the go-ahead of the bankruptcy judge. Quality Candy is also seeking court approval to get out of various leases at area malls.  Under the bankruptcy laws in Wisconsin and other states, bankrupt companies for walk away from such leases if the bankruptcy judge approves. In this instance, it would allow the successor company to negotiate better lease terms with the shopping centers.

As we have discussed previously, a business entity can not file for a Chapter 13 bankruptcy in Milwaukee, but Chapter 13 is an option for an individual who is  personally on the hook for business debts. If you operate a business that may be drowning in red ink, it may be time to turn to a Wisconsin bankruptcy lawyer for assistance. A Chapter 13 bankruptcy in Milwaukee may be the best way to cut your losses and move forward.