Legal Question in Bankruptcy in Wisconsin

Any time that a small business owner is in financial trouble, a personal bankruptcy may be worth considering. Often the owner has either personally guaranteed the debts of the business or is operating as a sole proprietorship, meaning that there is no difference between the finances of the business and those of the owner. In that event, whether or not a sale of the business is possible, the owner can discharge many if not most of the personal business obligations in a chapter 7 and either close the business or continue to operate it after a reorganization of ownership. Sales of financially troubled businesses are extremely complex since the buyer will usually only want to buy the assets and not the liabilities. Therefore, nobody should ever attempt to sell a small business without the advice of an experienced business bankruptcy attorney. Various statutes, such as the bulk sales act, also regulate what can lawfully be done with the sales proceeds, as well as what sort of advanced notice of the sale must be given to creditors. Some liabilities of running a small business such as payroll taxes, sales taxes and unemployment taxes (to name a few), are not dischargeable in bankruptcy, and �out of trust� sales of assets which are secured or in which others have an interest can also lead to criminal charges if not properly remedied. My comments in this online forum are offered for public educational purposes only and are not legal advice. They do they create any attorney/client relationship between us. However, I may be able to represent you if you contact my Racine office and arrange see me.