Personal Bankruptcy Reorganization Question

[need2know]

How is a 'reorganization' different from WI Chapter 128 and are both available for a small business (single member LLC)?

If I already have a low credit score, would either of these choices make it worse or would it stay the same and reflect that I was paying the bills off?

Thank you---

 

[Michael Wechsler]

How is a 'reorganization' different from WI Chapter 128 and are both available for a small business (single member LLC)?

If I already have a low credit score, would either of these choices make it worse or would it stay the same and reflect that I was paying the bills off?

Of note, you are dealing with a corporate entity not a personal debt.

Regarding the differences in types of bankruptcies, a liquidation bankruptcy such as Chapter 7 is one where you request that the Bankruptcy Court discharge your debts. A reorganization like Chapter 13 is a little different. You file a plan with the court where you propse how you will repay the creditors, to varying extents.