Key Steps for Filing Chapter 11 Bankruptcy in Kenosha, WI

Chapter 11 bankruptcy in Kenosha, WI allows businesses to restructure debt, continue operations, and propose a reorganization plan approved by creditors and the court.

Chapter 11 is a bankruptcy process designed for businesses that want to stay open while renegotiating debts, extending payment terms, and reducing obligations through a court-approved plan.

Unlike Chapter 7, which liquidates assets, Chapter 11 lets the business remain operational as a debtor in possession. You keep control of day-to-day management while working with creditors and the court to create a feasible repayment structure. The automatic stay halts lawsuits, foreclosures, and collection activity immediately upon filing.

Small businesses may use Subchapter V, a streamlined version introduced in recent years. It reduces costs, shortens timelines, and eliminates the absolute priority rule, making reorganization more accessible for companies with less than approximately $7.5 million in debt.

The plan outlines how you will pay creditors over time, which debts will be reduced or restructured, and how the business will generate sufficient cash flow to meet obligations.

Creditors vote on the plan by class. Secured creditors, unsecured creditors, and equity holders each vote separately. Approval requires majority consent in number and two-thirds in dollar amount within each class. Even if one class rejects the plan, the court may confirm it under the cramdown provisions if the plan is fair and equitable.

You must provide detailed financial disclosures, including profit and loss statements, balance sheets, cash flow projections, and tax returns. Transparency builds creditor trust and increases the likelihood of plan confirmation.

Yes, the automatic stay stops creditors from seizing equipment, inventory, real estate, or other assets, allowing you to use them to generate revenue during the reorganization period.

You may sell assets with court approval if the sale benefits the estate and creditors. Chapter 11 also permits you to reject unfavorable contracts and leases, reducing ongoing liabilities. Kenosha manufacturers and retailers often use this flexibility to exit costly obligations while retaining core operations.

Kenosha's blend of manufacturing, logistics, and retail creates economic cycles that strain cash flow, and Chapter 11 offers a legal path to adjust debt while preserving jobs and customer relationships.

Local businesses facing supplier disputes, lease challenges, or market downturns benefit from the breathing room Chapter 11 provides. The Michelson Law Offices has served Kenosha for over 20 years, ensuring clients receive knowledgeable guidance through corporate restructuring.

Our family-owned firm supports business owners at every stage of the case. Plan your next steps by calling 262-638-8400 to explore Chapter 11 options for your company.