Wisconsin Bankruptcy Law

With the baseball season in full swing, the ordinary perception is that owning a professional sports franchise is like a license to print money. Evidently not so. The Hicks Sports Group (HSG), the owners of the Texas Rangers, defaulted on $525 million in debt last year, and unhappy creditors may force the team into involuntary bankruptcy. The team and the creditors have evidently reached a stalemate in negotiations. Amidst this turmoil, Major League Baseball (MLB) may seize the team (under its "best interests of baseball" rule) to orchestrate the sale of the franchise to a group that includes team president Nolan Ryan, the Hall of Fame pitcher. Creditors, however, are said to be dissatisfied with that prospect because of other, higher offers that are on the table. The team owes money to 40 creditors, with the largest being Monarch Alternative Capital.

According to Sports Business Journal.com:

MLB is motivated in part to have the sale completed because it has been supporting payroll at the team since the default. But baseball may also be moving to act now because of worries the creditors could file an involuntary bankruptcy petition. At that point, baseball would not be able to exert the influence it could now, said Irwin Kishner, chairman of the corporate department at New York law firm Herrick Feinstein.

“In bankruptcy court, the judge wants to maximize the assets on behalf of the creditors,” he said.

As part of the deal, apparently the Ryan group is willing to pay HSG for land near the ballpark on which there are no creditor liens, which makes it the preferred buyer from HSG’s point of view.

All high-finance wheeling-dealing is a far cry from what might be involved in, for example, a Milwaukee small business bankruptcy voluntarily entered into by the business owner. Subject to certain unsecured debt limits, a self-employed individual or someone operating an unincorporated business is eligible for Chapter 13 relief under the bankruptcy laws of Wisconsin. By restructuring the amount owed, a Chapter 13 plan allows some debts to be paid off in monthly installments in a three-to-five year period while discharging others. If you operate a business that’s on the verge of closing its doors because the debt load has become unmanageable, contact a bankruptcy attorney in Milwaukee. And depending upon the circumstances, you may be allowed to continue your business during the course of a Chapter 13 bankruptcy in Milwaukee or elsewhere.

A story in the Green Bay Gazette reaffirms that there is life after an individual bankruptcy in Wisconsin. Robert Jahnke filed bankruptcy in the 90s owing to a divorce along with crushing business debts and an inability to negotiate appropriate payment arrangements with his creditors. In the process, he lost his travel agency business and his credit rating went into the tank. Sometime after the bankruptcy, the article reports, he went back and voluntarily paid off his creditors, but was still unable to get business loans.

While working in a prison, he self-financed a door-to-door marketing business. After selling that business, he started PrePaid Legal and later TopHat Marketing. He quit the prison job in 2001 to devote full-time to his entrepreneurial ventures. Jahnke also found the time to help start Helping Business Build Assets (HBBA), a non-profit business networking group.

Here’s what Jahnke says to those individuals who might similarly be in need of debt relief in Wisconsin: “Having experienced a bankruptcy, he recommends that businesses do everything possible to avoid it. That means getting help early, being upfront with creditors and refinancing debt payments. But, if a bankruptcy is necessary, he wants others to know it isn’t the end of the road.”

Never give up the dream of starting a new business venture after bankruptcy, he adds, even if that means starting small. “I read that Col. Sanders went to 1,000 places before he got a loan for his chicken.”

While it didn’t happen overnight, Jahnke evidently worked closely with his debt consolidation lawyer to get back on his feet and again become successful. So if you are being hounded by creditors to the point that you need to consider a personal bankruptcy in Milwaukee or elsewhere, remember that in all likelihood you can survive and thrive after seeking bankruptcy protection.

Although the employment rate has apparently dipped a bit under the latest government statistics, the economy has yet to dig itself out the hole. Against that backdrop, bankruptcies appear to show no sign of slowing down. Case in point: Neenah Enterprises, Inc., one of the largest independent foundries in the U.S., filed for bankruptcy protection this week. The Neenah, Wisconsin, based company has been operation since 1872 and is best known for making manhole covers and storm grates. In its Chapter 11 filing with the bankruptcy court, the company reported debts of nearly $450 million and assets totaling about $286 million. The company says it has cut deals with major creditors to reduce its debt load while still paying suppliers and vendors. It also has arranged for an additional $140 million in loans that will allow it to stay in business pending court approval. Company representatives also said that it will emerge from the Chapter 11 reorganization in better financial shape and without the need to lay off any workers, which is good news for its 800 employees in Wisconsin.

These are challenging times for business and households who may be seeking debt relief in Wisconsin. For individual consumers who may be out of work or have other serious financial burdens, a Chapter 7 or Chapter 13 bankruptcy in Milwaukee or in the surrounding area can be a way to look with hope to the future. A qualified, experienced bankruptcy attorney in Milwaukee or in other Wisconsin cities can explain the options that are available under the bankruptcy laws of Wisconsin and develop a solution geared to the individual client, whether that client is an individual or a business.

The economy, though efforts are being made to turn it around, has taken a huge hit on all types of people.  It could be argued that small businesses have suffered the most.  Most attorneys avoid working with small businesses when it comes to bankruptcy because the process can be quite complicated and involved.  In Milwaukee small business bankruptcy is becoming more and more of a reality as the ability to rebuild seems to slipping through the fingers of business owners.  There are options out there for small business owners.  You may even be interested in looking at your options with liquidation.  Not every attorney is familiar with business issues, so if you are considering looking for debt relief Wisconsin does have a few attorneys that may be able to provide services, but be sure to ask questions about experience working with your specific issues.

If you are trying to keep your business open, you may have some options as well.  Please don’t hesitate to contact my office to set up a free consultation to see if I might be able to help you keep your doors open.  It can be difficult watching something that you put so much of yourself and years of hard work into start to fall apart.  I might be able to help you figure out how to rebound from your setbacks.

Small business owners are finding themselves in very difficult times.  Many are finding themselves struggling harder than ever to compete in the current economic situation.  Unfortunately, these problems may prove to be too much to continue as business starts thinning out.  In Milwaukee small business bankruptcy is becoming more and more of an option for owners.  Bankruptcy laws in Wisconsin can actually help small business owners figure out how to recover from the economic downfall.  Perhaps filing bankruptcy is not an option that you would like to consider.  There are also other options that offer debt relief in Wisconsin.  We also have the capability of negotiating business debts.  Owning your own business can be stressful, and it can be really hard to watch as what you’ve worked toward starts to deteriorate in front of you.  There is no need to just sit back and watch things get worse.  You may find solutions by exploring Wisconsin bankruptcy information.  For answers to your questions, it would be useful to contact a Wisconsin Bankruptcy lawyer to help assist and explain the process.  Our firm has been offering Milwaukee Bankruptcy Services for the past 11 years, and whether you are looking to file a personal bankruptcy in Milwaukee, or you need to help with your small business, we have the experience necessary to help.