Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

Looking at the relationship between receivership and bankruptcy

In our last post, we mentioned the ongoing bankruptcy troubles of Milwaukee businessman Robert Kraft. As we noted, Kraft has filed for Chapter 11 bankruptcy--and, more recently, personal bankruptcy--and his Chapter 11 filing came after one of his companies was placed in receivership.

One of the potential issues with receiverships is whether a debtor whose assets are placed in receivership may file for bankruptcy. The answer is that it depends whether the receivership is through a state or federal court, as well as the circumstances of the case. It may generally be allowed when a receivership is through a state court, but it isn't as clear when the receivership is through a federal court, which raises the interesting question of which proceeding takes precedence when a bankruptcy case is filed during an ongoing receivership. 

The answer to the above question is, unfortunately, not cut and dry. It really depends on the facts of each case, and courts are going to consider various factors, including: the length of the receivership; the debtor's actions; the form of bankruptcy filing; the party which sought out the receivership; and whether the debtor is using the bankruptcy process simply in order to obtain a more favorable outcome.

Companies in the midst of a receivership which intend to seek out bankruptcy need to have guidance and advocacy when doing so to ensure their interests receive strong advocacy. Our firm can help ensure that a debtor business has the best possible representation in its case, regardless of what direction it goes.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.