Legal Question in Bankruptcy in Wisconsin

Chapter 11 or 13?

Chapter 11 is for business reorganization. It will cot you between a quarter and a half million dollars, especially by the time you get through paying your lawyers and accountants and the creditors committee lawyers and accountants.

If ytou are a consumer and want to use bankruptcy reorganization, you file Chapter 13. With your attorney fee and everything else, you should get buy for about a grand and the attorney fee can be paid out of the Chapter 13 Plan.

Difference between Chapter 13 and 11

The biggest difference in our district (E.WI) is expense and complexity--the concepts are otherwise somewhat similar between the two chapters. The minimum expense for a chapter 11 is about $10,000.00, and a chapter 13 is 1/10th of that. Chapter 11's are therefore only viable here for otherwise succesfull business enterprizes who are experiencing some sort of temporary problem such as a particular piece of litigation. The federal government through the office of the U.S. Trustee is actively involved in all chapter 11's and generally push for immediate conversion to liquidation (chapter 7), while in chapter 13's they are rarely involved. Their involvement increases the reporting requirements (and, therefore, the attorney and C.P.A. time) astromnomically. Filing fees and other administrative fees are also much higher. Your only practical options as a consumer are therefore chapter 7 or 13. Call me at 414-633-3090 for further discussion or e-mail me. Thanks, Jay K. Nixon.