Chapter 11 bankruptcy springs to mind when thinking about remedies to resolve the financial issues of a struggling business, but it is not the only option available. It is important that businesses consider all of the options available for finding a path out of financial difficulties.
The experienced Wisconsin debt-relief attorneys of Steinhilber Swanson LLP can help you explore assignments for benefit of creditors (ABC) in addition to Chapter 11.
Differences Between ABCs and Chapter 11
Unlike Chapter 11, ABCs do not take place in the bankruptcy courts. ABCs are often less costly for creditors and more efficient than going the through the highly-structured bankruptcy process.
A receiver is appointed for ABCs via the Order of Appointment. Receivers are responsible for all management decisions financial stewardship, and regulatory compliance of the debtor. ABCs in Wisconsin take place under Wis. Stats. Chapter 128 and usually arise after a debtor has assigned for the benefit of its creditors all right, title and interest to the receiver.
Is an ABC the Right Option for You?
It truly depends on the specific circumstances of your situation. In general, ABCs are likely to be more effective in situations where reorganization would not be practical. If there is no hope of reorganizing or selling, ABC is an efficient and cost-effective way to maximize the liquidation value of a business.
Contact Steinhilber Swanson LLP to Discuss Your Options
With convenient offices in Madison, Oshkosh, and Milwaukee, we’re able to help families and businesses all over the state of Wisconsin. Call us at 866-381-4391 to schedule a consultation.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.