5 Things To Know About: CHAPTER 128 (WISCONSIN) ReceIverships

Summary:

01: Chapter 128 is a Wisconsin state statute that governs assignments for the benefit of creditors. Unlike an Illinois ABC, the Wisconsin process is governed by statute and has state circuit court supervision. 

02: In a Chapter 128 receivership, the assets of a debtor are always liquidated, either through a sale of the business as a going concern or through an orderly liquidation. The debtor can select the Receiver versus having a court-appointed trustee in a Chapter 7 bankruptcy.

03: While a Chapter 128 process is court supervised, the lack of a detailed statutory framework allows for flexibility and creativity, providing a more streamlined and cost-effective alternative to bankruptcy.

04: Asset sales under Chapter 128 can be accomplished shortly after filing and the buyer may obtain a court order approving the transaction free and clear of all liens and without successor liability. 

05: Expert Guidance: A turnaround consultant can provide valuable expertise and guidance to businesses considering a Chapter 128 filing. They have extensive knowledge and experience in financial restructuring and can help navigate the complexities of the process, ensuring a smoother and more successful outcome.