Chapter 7 & 11 Business Bankruptcies & Receiverships in Milwaukee

In the event a business workout is infeasible or unsuccessful, a business bankruptcy may be the only means of preserving the value of the business for sale, or of forcing its creditors to accept a debt reorganization plan. While we prefer to solve business financial problems outside of the bankruptcy court context, circumstances including being sued, the bank declaring a default under its loan agreements, and account levies by taxing authorities, can leave a business with no other option than a bankruptcy filing to regain financial control.

Advantages of Business Chapter 7 and 11 Bankruptcies:

  • Reject and renegotiate unfavorable lease and other contract terms
  • Renegotiate terms of secured financing, including interest rates
  • Recover involuntary and voluntary payments for redistribution to creditors whose claims may be guaranteed by officers of the business
  • Stop a forced liquidation and buy time to sell the business on the open market for its going concern value
  • Negotiate new credit terms with critical trade creditors and suppliers while repaying old payables over an extended period of time
  • Stop collection lawsuits and other expensive litigation
  • Reject unfavorable collective bargaining contracts
  • Stop foreclosure and involuntary receiverships


Receiverships are generally used to stop a forced liquidation of the business and give the owners time to sell the business on the open market in hopes of obtaining top dollar for the assets of the business.

Receiverships have some advantages over traditional business bankruptcies. Receiverships offer a cheaper and faster process of selling a business, leaving more value on the table to pay the troubled company’s secured claims and tax obligations.