A business will be sold in auction and the sale price does not even cover their secured creditors, including the bank that they owe. I was informed that it would be unlikely to receive any payment as an unsecured creditor. Is there any action I can later pursue in order to collect payment? Do creditors have any rights over this law besides filling up a claim that is not worth much when there are no funds available?
Personal Injury Lawyer
More than likely no; however, depending on the circumstances, you may be able to "pierce the corporate veil" and pursue the business owners personally. More information would be needed to make that determination, such as whether or not the corporation was a valid/legit entity, etc.
Real Estate Attorney
A chapter 128 is a debt repayment plan in the State of Wisconsin, and not a bankruptcy. You indicate you are in the State of Illinois. If the State of Illinois has jurisdiction, you may be able to file a lawsuit against the business in Illinois. However, if there are no assets located in Illinois, you would need to enforce the judgment in Wisconsin (assuming that is where all the the business assets are located) At that point, Wisconsin state law would govern your collection. More facts are needed to determine the best course of action. Seek an attorney for a consultation to obtain advice after a review of all the facts.