Legal Question in Banking Law in Wisconsin

Bankruptcy would be a natural consideration for anyone in your situation, which would prevent many of the things which the bank could otherwise do to you due to a default on a business loan. Normally, those things would include wage or bank account garnishments, asset seizures (such as vehicles) and judgment liens against real estate upon which the bank may not yet have mortgage liens. Depending upon your income and asset values, you could probably discharge the entire obligation to the bank. However, in chapter 7, any property which you gave as collateral under a valid bank lien would probably be lost, unless you could pay the bank at least the current value of the property, following a negotiated settlement with the bank or determination of secured status by the bankruptcy court following an adversary lawsuit. Another way to retain the collateral property would be to pay at least the amount if its value through a chapter 13 bankruptcy reorganization plan. You also generally have only 20 days to fight any lawsuit by filing an answer outside of bankruptcy, although some types of lawsuit summons will give you a slightly longer time period. You therefore urgently need to consult with an experienced bankruptcy lawyer as soon as possible. Attorney responses on this public website are intended only for public educational purposes rather than as legal advice for your specific situation. Responses to your questions therefore do not create an attorney client relationship between us and should not be relied upon for making any important decisions until they have been reconsidered by your private attorney. You are; however, welcome to contact my office in Racine to discuss any additional questions which you may have or to seek private advice intended for you alone. Answers on this website may also contain attorney advertising materials.