Chapter 128 Receiverships
A Wisconsin business in financial difficulty doesn’t necessarily have to file for bankruptcy. Chapter 128 of the Wisconsin statutes affords an alternative remedy which is often less expensive and more efficient. Chapter 128 allows for the initiation of a legal proceeding allowing for the transfer of all of a corporation’s assets to a previously selected receiver. The receiver, in turn, will sell or liquidate all of the assets and pursue all causes of action. Utilization of chapter 128 in Wisconsin as a vehicle to resolve business failure has the additional advantage of minimizing the risks of successor liability even if the former principals of the business are part of a group acquiring the business assets from the receiver as long as the new business is not a mere continuation of the business which failed.
